[F16(1)This paragraph applies if—U.K.
(a)a person disposes of an asset that derives at least 75% of its value from UK land (as determined in accordance with Part 2 of Schedule 1A), and
(b)the disposal has an appropriate connection to a collective investment vehicle (see sub-paragraphs (3) to (6) for the cases in which this test is met).
(2)For the purposes of section 1A(3)(c) or 2B(4)(b) (disposals by non-UK residents of assets deriving 75% of value from UK land etc), the person is treated as having a substantial indirect interest in the UK land at the time of the disposal.
(3)A disposal has an appropriate connection to a collective investment vehicle if the asset disposed of consists of a right or interest in—
(a)a collective investment vehicle, or
(b)a company at least half of whose market value derives from its being a direct or indirect participant in one or more collective investment vehicles.
(4)A disposal has an appropriate connection to a collective investment vehicle if—
(a)the vehicle is constituted by two or more persons carrying on a trade or business in partnership, and
(b)the disposal is made by a person as a participant in the vehicle.
(5)A disposal has an appropriate connection to a collective investment vehicle if the vehicle is a company and the disposal is made by it.
(6)A disposal has an appropriate connection to a collective investment vehicle if—
(a)a company (which is not the vehicle) makes the disposal, and
(b)the vehicle, and one or more other collective investment vehicles that are UK property rich, have a 50% investment in the company.
(7)Collective investment vehicles have a 50% investment in a company if, applying the rule in paragraph 9 (but without regard to paragraph 10) of Schedule 1A as if references to 25% were references to 50%, the vehicles would be regarded as having a 50% investment in the company at the time of the disposal.
(8)For this purpose the collective investment schemes are to be regarded as if they were a single person.
(9)This paragraph is subject to paragraph 7 (collective investment vehicles expected to have no more than 40% investments in UK land).]
Textual Amendments
F1Sch. 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