(1) In this section -
'exempt period' shall be construed in accordance with subsection (3);
'subsequent period condition' means the condition which is satisfied where the circumstances specified in subsection (4) apply.
(2) Section 835R shall not apply in relation to an accounting period of a controlled foreign company where -
(a) the accounting period ends during an exempt period, and
(b) the subsequent period condition is satisfied by the controlled foreign company.
(3) An exempt period shall begin when a company first becomes a controlling company in relation to the controlled foreign company concerned (in this section referred to as the 'relevant time') and shall end 12 months from the relevant time.
(4) The subsequent period condition shall be satisfied by a controlled foreign company where -
(a) the company ceases to be regarded as a controlled foreign company in accordance with Chapter 1, or
(b) the controlled foreign company charge does not apply,
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