Section 167 | Gifts to foreign-controlled companies.

(1)Subject to section 167A, section 165(4) shall not apply where the transferee is a company which is within subsection (2) below.^F1

(2)A company is within this subsection if it is controlled by a person who, or by persons each of whom—

(a)is not resident in the United Kingdom, and^F2

(b)is or is connected with the person making the disposal.^F3

(3)For the purposes of subsection (2) above, a person who (either alone or with others) controls a company by virtue of holding assets relating to that or any other company and who is resident in the United Kingdom is to be regarded as not resident there if—^F4

(a)he is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and

(b)by virtue of the arrangements he would not be liable in the United Kingdom to tax on a gain arising on a disposal of the assets.