Section 376 | Interpretation of section 375

(1)For the purposes of section 375 and this section, Chapter 2 of Part 10 of CTA 2010 (meaning of “close company”) applies with the omission of section 442(a) (exclusion of non-resident companies).

(2)A person who is a participator in a company which controls another company is treated for the purposes of section 375 and this section as being a participator in that other company also.

(3)Subject to that, in section 375 and this section “participator”, in relation to a company, means a person who is a participator in the company within the meaning given by section 454 of CTA 2010, but not a person who is such a participator just because of being a loan creditor of the company.

(4)Section 472 (meaning of “control”) applies for the purposes of section 375 and this section.

(5)In section 375—

“CIS-based close company” means a company which would not be a close company apart from the rights and powers of one or more partners in a CIS limited partnership being attributed to another of the partners under section 451(4) to (6) of CTA 2010 because of section 448(1)(a) of that Act,

“CIS limited partnership” means a limited partnership—

(a)which is a collective investment scheme, or

(b)which would be a collective investment scheme if it were not a body corporate,

“non-qualifying territory” has the meaning given by section 173 of TIOPA 2010,

“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

“small or medium-sized enterprise” has the meaning given by section 172 of TIOPA 2010.

(6)For the purposes of section 375, 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.