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| Elections and designations under section 749: supplementary provisions. |
749A. - (1) An election under paragraph (d) or a designation under paragraph (e) of section 749(3) shall have effect in relation to-
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(a) the accounting period in relation to which it is made ("the original accounting period"), and |
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(b) each successive accounting period of the controlled foreign company in question which precedes the next one in which the eligible territories are different, |
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and shall so have effect notwithstanding any change in the persons who have interests in the company or any change in the interests which those persons have in the company. |
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(2) For the purposes of subsection (1)(b) above, an accounting period of the controlled foreign company is one in which the eligible territories are different if in the case of that accounting period-
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(a) at least one of the two or more territories which fell within subsection (1) of section 749 in the original accounting period does not fall within that subsection; or |
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(b) some other territory also falls within that subsection. |
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(3) Any election under section 749(3)(d)-
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(a) must be made by notice given to an officer of the Board; |
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(b) must be made no later than twelve months after the end of the controlled foreign company's accounting period in relation to which it is made; |
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(c) must state, as respects each of the persons making it, the percentage of the chargeable profits and creditable tax (if any) of the controlled foreign company for that accounting period which it is likely would be apportioned to him on an apportionment under section 747(3) if one were made; |
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(d) must be signed by the persons making it; and |
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(4) Nothing in-
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(a) paragraph 10 of Schedule 18 to the Finance Act 1998 (claims or elections in company tax returns), or |
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(b) Schedule 1A to the Management Act (claims or elections not included in returns), |
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shall apply, whether by virtue of section 754 or otherwise, to an election under section 749(3)(d). |
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(5) A designation under section 749(3)(e) is irrevocable.
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(6) Where the Board make a designation under section 749(3)(e), notice of the making of the designation shall be given to every company resident in the United Kingdom which appears to the Board to have had an assessable interest in the controlled foreign company at any time during the accounting period of the controlled foreign company in relation to which the designation is made.
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(7) A notice under subsection (6) above shall specify-
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(a) the date on which the designation was made; |
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(b) the controlled foreign company to which the designation relates; |
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(c) the accounting period of the controlled foreign company in relation to which the designation is made; and |
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(d) the territory designated. |
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(8) Subsection (9) of section 749 has effect for the purposes of subsection (6) above as it has effect for the purposes of subsection (8) of that section.
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| Interests in companies. |
749B. - (1) For the purposes of this Chapter, the following persons have an interest in a company-
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(a) any person who possesses, or is entitled to acquire, share capital or voting rights in the company; |
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(b) any person who possesses, or is entitled to acquire, a right to receive or participate in distributions of the company; |
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(c) any person who is entitled to secure that income or assets (whether present or future) of the company will be applied directly or indirectly for his benefit; and |
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(d) any other person who, either alone or together with other persons, has control of the company. |
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(2) Rights which a person has as a loan creditor of a company do not constitute an interest in the company for the purposes of this Chapter.
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(3) For the purposes of subsection (1)(b) above, the definition of "distribution" in Part VI shall be construed without any limitation to companies resident in the United Kingdom.
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(4) References in subsection (1) above to being entitled to do anything apply where a person-
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(a) is presently entitled to do it at a future date, or |
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(b) will at a future date be entitled to do it; |
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but a person whose entitlement to secure that any income or assets of the company will be applied as mentioned in paragraph (c) of that subsection is contingent upon a default of the company or any other person under any agreement shall not be treated as falling within that paragraph unless the default has occurred. |
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(5) Where a company has an interest in another company and a third person has, or two or more persons together have, an interest in the first company (as in a case where one company has a shareholding in a controlled foreign company and the first company is controlled by a third company or by two or more persons together) subsections (6) and (7) below apply.
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(6) Where this subsection applies, the person who has, or each of the persons who together have, the interest in the first company shall be regarded for the purposes of this Chapter as thereby having an interest in the second company.
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(7) In any case where this subsection applies, in construing references in this Chapter to one person having the same interest as another, the person or as the case may be, each of the persons who together have, the interest in the first company shall be treated as having, to the extent of that person's interest in that company, the same interest as the first company has in the second company.
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(8) Where two or more persons jointly have an interest in a company otherwise than in a fiduciary or representative capacity, they shall be treated for the purposes of this Chapter as having the interest in equal shares."
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