Finance Act 2009

Sections 409 and 410 U.K.

7 U.K. Section 409(1) (postponement until redemption of debits for close companies' deeply discounted securities)—

(a) in paragraph (b), after “there is a person” insert “ ( ”, and

(b) insert at the end (not as part of paragraph (d))— “ and, where it applies, the non-qualifying territory condition is met. ”

8 (1) Section 410 (interpretation of section 409) is amended as follows. U.K.

(2) In subsections (3)(b) and (4)(b), after “resident” insert “ for tax purposes ”.

(3) After subsection (4) insert—

“(4A) The non-qualifying territory condition applies if C is a company; and the non-qualifying territory condition is that C is—

(a) resident for tax purposes in a non-qualifying territory at any time in the relevant period, or

(b) effectively managed in a non-taxing non-qualifying territory at any such time.”

(4) In subsection (5), for the definition of “resident” substitute—

““resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management, and”.

(5) After that subsection insert—

“(5A) For the purposes of this section, a non-qualifying territory is “non-taxing” if companies are not under its law liable to tax by reason of domicile, residence or place of management.”