3(1)Section 375 (late interest: loans to close companies by participators etc) is amended as follows.
(2)In subsection (1), insert at the end (not as part of paragraph (b))—
“and, where subsection (4A) applies, the non-qualifying territory condition is met.”
(3)In subsections (3)(b) and (4)(b), after “resident” insert “for tax purposes”.
(4)After subsection (4) insert—
“(4A)This subsection 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 actual accrual period, or
(b)effectively managed in a non-taxing non-qualifying territory at any such time.”