»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp interests of persons related to UK resident companies are prevented from being taken to be relevant interests in a CFC to the extent that such interest may be attributed to a UK resident company. TIOPA10/S371OD identifies instances where a non-UK resident person related to a UK resident company holds an indirect interest through a UK resident company or another related person, or has an interest that is also an indirect interest of a UK resident company, and ensures that these interests are not to be regarded as being relevant interests. »Ê¹ÚÌåÓýapp section has the effect of prioritising the interest held by the UK resident company as being the relevant interest.

TIOPA10/S371OD(3) defines related person as a person, other than a UK resident company, who is connected or associated with any of the UK resident companies with an interest in the CFC. Section 371VF defines “connected� and “associated� for this purpose - see INTM248350 for further detail

Example: Interest of a related person through a direct or indirect interest in a UK resident company with a relevant interest (TIOPA2010/371OD(4))

If company A, a non-UK resident company, holds a 100% direct (or equally indirect) interest in company B, a UK resident company, and in turn company B has a 100% interest in company C, a CFC, then both company A and company B will have an interest that would, without section 371OD(4) be a relevant interest. However subsection (4) operates to prevent company A’s interest being treated as a relevant interest because it is held only by virtue of UK resident company B’s interest, which is the relevant interest.

Example: Interest of a related person where a UK resident company has an indirect interest in the CFC by virtue of an interest in the related person (TIOPA10/S 371OD(5))

If company A (a UK resident company) holds a 100% interest in company B (a non-UK resident company) who has a 100% interest in company C (the CFC), subsection (5) will operate to ensure that the interest of company B is not a relevant interest and that, the interest of company A, will be the only relevant interest.