Section 376 — Corporation Tax Act 2009: Interpretation of section 375

Interpretation of section 375 376 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— which is a collective investment scheme, or 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.