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

Other "relevant interests"

Section 371OE deals with how a person's direct interest in a controlled foreign company can itself be a "relevant interest", provided it has not already been counted as someone else's relevant interest further up the ownership chain.

• This section applies where a person holds a direct interest in a CFC that does not already qualify as a relevant interest under the rules for UK resident companies (section 371OC) or persons related to UK resident companies (section 371OD).
• In those circumstances, the person's direct interest is treated as a "relevant interest" in the CFC in its own right.
• However, to the extent that the same interest has already been picked up as another person's relevant interest — because that other person holds an interest in the first person and already has a relevant interest under sections 371OC or 371OD — it is excluded to avoid double counting.
• This ensures that every direct interest in a CFC is captured as a relevant interest somewhere in the ownership chain, but the same economic interest is not treated as a relevant interest more than once.