Subject to section 167A, section 165(4) shall not apply where the transferee is a company which is within subsection (2) below.
A company is within this subsection if it is controlled by a person who, or by persons each of whom—
is not resident in the United Kingdom, and
is or is connected with the person making the disposal.
For the purposes of subsection (2) above, a person who (either alone or with others) controls a company by virtue of holding assets relating to that or any other company and who is resident in the United Kingdom is to be regarded as not resident there if—
he is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and
by virtue of the arrangements he would not be liable in the United Kingdom to tax on a gain arising on a disposal of the assets.