Taxation (International and Other Provisions) Act 2010 section 371RD

Legal and economic control: supplementary provision

Section 371RD sets out the supplementary rules for attributing rights and powers to persons when determining whether they have legal and economic control of a company under the controlled foreign companies regime.

• When assessing control of a company, each person is attributed not only their own rights and powers but also rights and powers they are entitled to acquire in the future.
• A person is also attributed rights and powers held by others if those rights must be exercised on behalf of, under the direction of, or for the benefit of that person — but not where the rights arise solely from loan security arrangements.
• If a person is UK resident, they are additionally attributed the rights and powers of any connected UK resident person, including any rights that would be attributed to that connected person under these same rules.
• Rights and powers that can only be exercised jointly with others still count as belonging to the person for the purposes of these control tests.