SCHEDULES

SCHEDULE 17 Controlled foreign companies

Paragraph 12 of Schedule 25

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(1)

Paragraph 12 of Schedule 25 to the Taxes Act 1988 (meaning of “holding company" in paragraphs 6 and 8(3)) shall be amended as follows.

(2)

In sub-paragraph (1), after “in paragraphs 6 and 8(3) above and" there shall be inserted “ paragraph 12A below and in ”.

(3)

In sub-paragraph (5) (exclusion of income derived from certain sources) in paragraph (a)—

(a)

after “which is not a holding company" there shall be inserted “ or superior holding company ”; and

(b)

after “engaged in exempt activities" there shall be inserted “ or, in terms of sub-paragraph (5A) of that paragraph, is an exempt trading company ”.