[F1[F28A(1)This paragraph applies in a case where at least 25% of the ordinary share capital of the investing company is owned by qualifying institutional investors.U.K.
(2)The investing company also holds a “substantial shareholding” in the company invested in for the purposes of this Schedule if—
(a)the investing company holds ordinary shares, or interests in ordinary shares, in the company invested in the cost of which on acquisition was at least £20,000,000, and
(b)by virtue of those shares or interests or any other shares or interests in shares in the company invested in, the investing company—
(i)is beneficially entitled to not less than a proportionate percentage of the profits available for distribution to equity holders of the company invested in, and
(ii)would be beneficially entitled on a winding up to not less than a proportionate percentage of the assets of the company invested in available for distribution to equity holders.
(3)In sub-paragraph (2)—
“cost” means the amount or value of the consideration, in money or money's worth, given by the investing company or on its behalf wholly and exclusively for the acquisition of the ordinary shares or interests in ordinary shares, together with the incidental costs to it of the acquisition;
“proportionate percentage” means a percentage equal to the percentage of the ordinary share capital held by the investing company by virtue of the ordinary shares and interests in ordinary shares referred to in sub-paragraph (2)(a).
(4)For the purposes of sub-paragraph (2)(a) it does not matter whether there was a single acquisition or a series of acquisitions.
(5)If—
(a)the percentage (“the actual percentage”) of the profits or assets to which the investing company is, or would be, beneficially entitled as mentioned in sub-paragraph (2)(b)(i) or (ii) is less than the proportionate percentage, but
(b)having regard to the proportion that the actual percentage bears to the proportionate percentage, the difference can reasonably be regarded as insignificant,
the investing company is treated as meeting the condition in sub-paragraph (2)(b)(i) or (ii) (as the case may be).
(6)Paragraph 3B (owning ordinary share capital) applies for the purposes of sub-paragraph (1).
(7)Paragraph 8(2) applies for the purposes of sub-paragraph (2).
(8)In this paragraph “ordinary shares” means shares in the ordinary share capital of the company invested in.]]
Textual Amendments
F1Sch. 7AC inserted (with effect in accordance with s. 44(3)(4) of the amending Act) by Finance Act 2002 (c. 23), Sch. 8 para. 1
F2Sch. 7AC para. 8A inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 28(3)