Finance Act 1986

8 (1) Paragraph 9 of Schedule 4 to the Act of 1981 shall be amended as follows.

(2) In sub-paragraph (1), the following shall be substituted for the definition of subsidiary—

• “subsidiary", in relation to any person, means a company in which that person (whether alone or jointly with one or more persons and whether directly or through one or more nominees) holds, or is beneficially entitled to, 10 per cent, or more of the equity share capital, or possesses 10 per cent, or more of the voting power”.

(3) The following sub-paragraphs shall be added at the end—

“(3) For the purposes of this Schedule a person shall be taken to be connected with a programme contractor—

(a) if he is a subsidiary of the contractor;

(b) where the contractor is a company, if he is a person who (whether alone or jointly with one or more persons and whether directly or through one or more nominees) holds, or is beneficially entitled to, 10 per cent, or more of the equity share capital, or possesses 10 per cent, or more of the voting power; or

(c) where any other person is connected with the contractor concerned by virtue of paragraph (b) above, if he is a company in which that other person (whether alone or jointly with one or more persons and whether directly or through one or more nominees) holds, or is beneficially entitled to, 10 per cent, or more of the equity share capital, or possesses 10 per cent, or more of the voting power;

but does not include any person whose trade consists wholly or mainly of the distribution of programmes by wireless telegraphy or cable.

(4) Where the same person falls within more than one category of programme contractor, the definitions of "first category rate" and "second category rate" in section 32(4A) shall not have the effect of applying the lower or lowest rate in respect of all of his first category profits or (as the case may be) all of his second category profits but, subject to section 32(6), those profits shall be apportioned, and the provisions of this Act applied, in such manner as the Authority consider appropriate with a view to securing that the overall amount payable by him by way of additional payments is, as near as may be, equal to the aggregate of the amounts which would be so payable if there were as many separate programme contractors as there are categories of programme contractor within which he falls.”