@Krieghund:
The other Allied powers can take temporary control of a UK territory (rather than liberating it) if the capital that territory “reports to” is held by the Axis. The status of the other UK capital doesn’t matter.
From experience I just KNOW someone is going to misunderstand that, Krieg, so please don’t get offended by my further clarification:
The territory must first be conquered by the enemy AND the original owner’s capitol must be under enemy control (or the capitol responsible for that territory when dealing with British holdings). Then, and only then, if a power allied with that nation attacks and takes the territory back from the enemy, can they take temporary control of it.
Example: Germany takes France on round 1. Japan does not attack French Indo-China on their turn. England may move units into French Indo-China on their turn, but since French Indo-China has not been taken by the enemy by this point in the game, England (Calcutta) may not take temporary ownership of the territory.
Example: Germany takes England on round 3. England owns Central Persia. Italy takes Central Persia on Round 3. England (Calcutta) takes Central Persia on round 4. Since England (Calcutta) is the same England, no one may collect for the territory conquered, because England (London) would be the capitol that would collect for it.
Example: Japan takes Borneo on Round 4 and India (England, Calcutta) on round 6. America takes Borneo on round 6, America may collect for Borneo, because the nation that would normally collect has their capitol under enemy control. If later, America liberates India (England, Calcutta) on round 11, then America no longer collects income for Borneo, but rather, it reverts back to British rule.