Section 167 — Taxation of Chargeable Gains Act 1992: Gifts to foreign-controlled companies.

Gifts to foreign-controlled companies. 167 1 Subject to section 167A, section 165(4) shall not apply where the transferee is a company which is within subsection (2) below.

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 b is or is connected with the person making the disposal.

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—

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.