(1)For the purposes of section 551 “holder of excessive rights” means a person who meets—
(a)condition A, and
(b)either condition B or C.
[F1other than a person to whom a payment of a distribution must be made without deduction of income tax in accordance with regulation 7 of the Real Estate Investment Trusts (Assessment and Recovery of Tax) Regulations 2006 (S.I. 2006/2867) (gross payment of distributions).]
(2)Condition A is that the person—
(a)is beneficially entitled (directly or indirectly) to at least 10% of the [F2distributions] paid by the distributor,
(b)is beneficially entitled (directly or indirectly) to at least 10% of the distributor's share capital, or
(c)controls (directly or indirectly) at least 10% of the voting rights in the distributor.
(3)Condition B is that the person is a company.
(4)Condition C is that—
(a)the person is treated as a body corporate for tax purposes—
(i)in accordance with the law of a territory outside the United Kingdom with which arrangements have been entered into to provide relief from double taxation, or
(ii)in accordance with an international agreement containing such arrangements, and
(b)those arrangements have effect by virtue of an Order in Council under section 2 of TIOPA 2010.
(5)In subsection (2) “the distributor” has the meaning given by section 551(2).
Textual Amendments
F1Words in s. 553(1) inserted (1.4.2022) by Finance Act 2022 (c. 3), Sch. 3 paras. 5, 6(2)
F2Word in s. 553(2)(a) substituted (with effect in accordance with Sch. 4 para. 12 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 4 para. 7