Section 371BF | Companies which are participants in offshore funds ^F1

(1)A company (“C”) is not a chargeable company for the purposes of step 4 in section 371BC(1) if—

(a)the CFC is an offshore fund (as defined in section 355),

(b)at the relevant time and at all subsequent relevant times, C reasonably believes that the requirement of section 371BD(1) will not be met in relation to it, and

(c)the meeting of that requirement in relation to C is in no way attributable to any step—

(i)which was taken by C or any person connected or associated with C, and

(ii)which, at the time it was taken, could reasonably have been expected to cause that requirement to be met.

(2)“The relevant time” means—

(a)the beginning of the accounting period, or

(b)if C has no relevant interests in the offshore fund at the beginning of the accounting period, the time when C first has a relevant interest during the accounting period.

(3)“Subsequent relevant time” means any time during the accounting period at which there is an increase or some other change in the relevant interests in the offshore fund which C has.