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

Provision about interpretation

Section 371OB sets out how interests in a controlled foreign company (CFC) are to be interpreted for the purposes of the CFC rules, including the distinction between direct and indirect interests and rules for looking through certain investment vehicles and trust arrangements.

• An interest in a company is "indirect" if held through another company, and "direct" if held without an intermediary company
• Interests held by authorised investment funds (whether structured as open-ended investment companies or unit trusts) are treated as held by the underlying investors in proportion to their shareholdings or unit rights
• Interests held by bare trustees or nominees are treated as held by the beneficial owner(s) on whose behalf they act
• Where an interest is held in a fiduciary or representative capacity with identifiable beneficiaries (other than bare trusteeship), the interest is attributed to those beneficiaries on a just and reasonable basis