Taxation of Chargeable Gains Act 1992

[F1 13 (1) For the purposes of paragraph 12(2), a collective investment vehicle meets the qualifying conditions in this paragraph at any time if, at that time— U.K.

(a) it is a collective investment scheme and it meets the genuine diversity of ownership condition,

(b) it is a company (otherwise than as a result of paragraph 4) and it meets the recognised stock exchange condition and the non-close condition, or

(c) it is a collective investment vehicle (of any kind) and it meets the UK tax condition and the non-close condition.

(2) For the purposes of paragraph 12(3), a company which is not a collective investment vehicle meets the qualifying conditions in this paragraph at any time if, at that time, either—

(a) the company meets the UK tax condition and the non-close condition, or

(b) the collective investment scheme which wholly (or almost wholly) owns the company meets the genuine diversity of ownership condition.

(3) For the purposes of this paragraph a collective investment scheme meets the genuine diversity of ownership condition at any time if, at that time—

(a) it meets conditions A to C of regulation 75 of the Offshore Funds (Tax) Regulations 2009, or

(b) it meets the condition in regulation 75(5) of those Regulations,

and those Regulations apply for the purposes of this sub-paragraph as if any collective investment scheme which is not an offshore fund were regarded as an offshore fund.

(4) For the purposes of this paragraph a company meets the recognised stock exchange condition at any time if, at that time—

(a) it has ordinary share capital, and

(b) the shares forming part of its ordinary share capital are regularly traded on a recognised stock exchange.

(5) For the purposes of this paragraph a company meets the non-close condition at any time if, at that time, it—

(a) is not a close company, or

(b) is a close company but only because it has a qualifying investor as a direct or indirect participator.

(6) Paragraph 46 (meaning of “close company”, “qualifying investor” and “direct or indirect participator”) applies for the purposes of sub-paragraph (5).

(7) For the purposes of this paragraph a company meets the UK tax condition at any time if, on the assumption that all of the shares in it were disposed of for their market value at that time, the person making the election reasonably considers at that time that, as a result solely of double taxation arrangements, no more than 25% of the total proceeds would fall to be left out of account for the purposes of this Act.]

Textual Amendments

F1 Sch. 5AAA inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 21