3U.K.After section 750 insert—
(1)Where—
(a)in any accounting period a company is to be regarded by virtue of any of subsections (1) to (4) of section 749 as resident in a particular territory outside the United Kingdom, and
(b)within the meaning of section 750(1), the local tax in respect of the profits arising to the company in that accounting period is equal to or greater than three-quarters of the corresponding United Kingdom tax on those profits, but
(c)that local tax is determined under designer rate tax provisions,
the company shall be taken for the purposes of this Chapter to be subject to a lower level of taxation in that territory in that accounting period.
(2)In subsection (1) above “designer rate tax provisions” means provisions—
(a)which appear to the Board to be designed to enable companies to exercise significant control over the amount of tax which they pay; and
(b)which are specified in regulations made by the Board.
(3)Regulations under subsection (2) above—
(a)may make different provision for different cases or with respect to different territories; and
(b)may contain such supplementary, incidental, consequential or transitional provision as the Board may think fit.
(4)The first regulations under subsection (2) above may make provision having effect in relation to accounting periods beginning not more than fifteen months before the date on which the regulations are made.”