Part 5Miscellaneous income

F1CHAPTER 2AOffshore receipts in respect of intangible property

Exemptions

F2608JA.Exemption where company resident in specified territory

(1)

Section 608A does not apply in relation to a company for a tax year if—

(a)

the company is resident in a specified territory throughout the tax year,

(b)

UK-derived amounts arising to the company in the tax year are chargeable to tax under the laws of the territory,

(c)

where those amounts are chargeable only if remitted or otherwise received in the territory, the amounts are remitted or otherwise received there in the tax year,

(d)

the amount of tax which is paid in the territory in respect of the UK-derived amounts is not determined under designer tax provisions, and

(e)

the company is not, at any time in the tax year, involved in an arrangement the main purpose, or one of the main purposes, of which is to obtain a tax advantage for itself or any other person.

(2)

For the purposes of this section—

(a)

section 608D (meaning of residence) applies as if subsections (2)(b), (4) and (5) were omitted;

(b)

“specified territory” means a territory specified in regulations made by the Commissioners.

(3)

Regulations under this section may have effect from a date before the day on which they are made, except insofar as they result in a territory ceasing to be specified.