6

This section is subject to section 748A.

748A

Territorial exclusions from exemption under section 748

1

Nothing in section 748 prevents an apportionment under section 747(3) falling to be made as regards an accounting period of a controlled foreign company if the company—

a

is a company incorporated in a territory to which this section applies as respects that accounting period; or

b

is at any time in that accounting period liable to tax in such a territory by reason of domicile, residence or place of management; or

c

at any time in that accounting period carries on business through a branch or agency in such a territory.

2

The condition in subsection (1)(c) above is not satisfied as regards an accounting period of a controlled foreign company if the business carried on by the company in that period through branches or agencies in territories to which this section applies, taken as a whole, is only a minimal part of the whole of the business carried on by the company in that period.

3

The territories to which this section applies as respects an accounting period of a controlled foreign company are those specified as such in regulations made by the Treasury.

4

Regulations under subsection (3) above—

a

may make different provision for different cases or with respect to different territories; and

b

may contain such incidental, supplemental, consequential or transitional provision as the Treasury may think fit.

5

A statutory instrument containing regulations under subsection (3) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.