Taxation of Chargeable Gains Act 1992

[F1 22 (1) In this Schedule— U.K.

• “51 per cent. subsidiary” F2 ... has the meaning given by section 838 of the Taxes Act;

• “commercial association of companies” means a company together with such of its associated companies (within the meaning of section 416 of the Taxes Act) as carry on businesses which are of such a nature that the businesses of the company and the associated companies, taken together, may be reasonably considered to make up a single composite undertaking;

• “eligible beneficiary” shall be construed in accordance with paragraphs 7 and 20 above;

• F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “group of companies” means a company which has one or more 51 per cent. subsidiaries, together with those subsidiaries;

• [F4 “holding company” means a company that has one or more 51% subsidiaries;]

• [F5 “interest in shares” means an interest as a co-owner (whether the shares are owned jointly or in common, and whether or not the interests of the co-owners are equal), and “interest in debentures”, in relation to any debentures, has a corresponding meaning;]

• [F6 “joint venture company” has the meaning given by paragraph 23(2) below;]

• [F7 “non-trading company” means a company which is not a trading company;]

• [F7 “non-trading group” means a group of companies which is not a trading group;]

• “office” and “employment” have the same meanings as in the Income Tax Acts;

• [F8 “ordinary share capital” has the meaning given by [F9 section 989 of ITA 2007];]

• F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “qualifying company” shall be construed in accordance with paragraph 6 above;

• [F6 “qualifying shareholding”, in relation to a joint venture company, has the meaning given by paragraph 23(3) below;]

• “relevant period of ownership” shall be construed in accordance with paragraph 2 above;

• “shares”, in relation to a company, [F10 includes—

  (a)

  any securities of that company, and

  (b)

  any debentures of that company that are deemed, by virtue of section 251(6), to be securities for the purposes of that section];

• “trade” means (subject to section 241(3)) anything which—

  (a)

  is a trade, profession or vocation, within the meaning of the Income Tax Acts; and

  (b)

  is conducted on a commercial basis and with a view to the realisation of profits;

• [F11 “trading company” has the meaning given by paragraph 22A below;]

• [F12 “trading group” has the meaning given by paragraph 22B below;]

• “transaction” includes any agreement, arrangement or understanding, whether or not legally enforceable, and a series of transactions.

• [F13 “unlisted company” means a company—

  (a)

  none of whose shares is listed on a recognised stock exchange, and

  (b)

  which is not a 51 per cent subsidiary of a company whose shares, or any class of whose shares, is so listed;]

(2) For the purposes of this Schedule one company has a relevant connection with another company at any time when they are both members of the same group of companies or of the same commercial association of companies.

(3) References in this Schedule to the acquisition of an asset that was provided, rather than acquired, by the person disposing of it are references to its provision.

(4) References in this Schedule, in relation to a part disposal, to the asset disposed of are references to the asset of which there is a part disposal.]

Textual Amendments

F1 Sch. A1 inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), s. 121(2), Sch. 20

F2 Words in Sch. A1 para. 22(1) repealed (with effect in accordance with Sch. 10 para. 2, Sch. 40 Pt. 3(3) Note of the amending Act) by Finance Act 2002 (c. 23), Sch. 40 Pt. 3(3)

F3 Words in Sch. A1 para. 22(1) repealed (with effect in accordance with s. 67(7), Sch. 40 Pt. II(6) Note of the amending Act) by Finance Act 2000 (c. 17), s. 67(5), Sch. 40 Pt. II(6)

F4 Words in Sch. A1 para. 22(1) substituted (with effect in accordance with Sch. 10 para. 4(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 4(1)

F5 Words in Sch. A1 para. 22(1) inserted (with effect in accordance with Sch. 10 para. 5(2) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 5(1)

F6 Words in Sch. A1 para. 22(1) inserted (with effect in accordance with Sch. 10 para. 6(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 6(1)

F7 Words in Sch. A1 para. 22(1) inserted (with effect in accordance with s. 78(2) of the amending Act) by Finance Act 2001 (c. 9), Sch. 26 para. 5(2) (with Sch. 3)

F8 Words in Sch. A1 para. 22(1) inserted (with effect in accordance with Sch. 10 para. 7(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 7(1)

F9 Words in Sch. A1 para. 22(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 343 (with Sch. 2)

F10 Words in Sch. A1 para. 22(1) substituted (with application in accordance with Sch. 10 para. 8(2) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 8(1) (with Sch. 10 para. 8(3)(4))

F11 Words in Sch. A1 para. 22(1) substituted (with effect in accordance with Sch. 10 para. 9(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 9(1)

F12 Words in Sch. A1 para. 22(1) substituted (with effect in accordance with Sch. 10 para. 10(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 10(1)

F13 Words in Sch. A1 para. 22(1) inserted (with effect in accordance with s. 67(7) of the amending Act) by Finance Act 2000 (c. 17), s. 67(5)