No control of CDFI by investorU.K.
14(1)The investor must not control the CDFI at any time during the five year period.
(2)In this paragraph references to the investor include any person connected with the investor.
(3)Where the CDFI is a body corporate, the question whether the investor controls the CDFI shall, for the purposes of this paragraph, be determined in accordance with section 840 of the Taxes Act 1988.
This is subject to sub-paragraph (6).
(4)In any other case, the investor shall be treated, for those purposes, as having control of the CDFI if he has power to secure—
(a)by means of the possession of voting power in the CDFI, or
(b)by virtue of any powers conferred by the constitution of, or any other document regulating, the CDFI,
that the affairs of the body are conducted in accordance with his wishes.
This is subject to sub-paragraphs (5) and (6).
(5)Where the CDFI is a partnership and the investor is a member of that partnership, for the purposes of determining in accordance with this paragraph whether the investor controls the CDFI the other members of that partnership shall not, by virtue of their membership of the CDFI, be treated as partners of the investor.
(6)In determining whether the investor controls the CDFI there shall be attributed to the investor (to the extent that it would not otherwise be the case)—
(a)any rights or powers that the investor is entitled to acquire at a future date or will, at a future date, become entitled to acquire, and
(b)any rights or powers which another person holds on behalf of the investor or may be required to exercise, by direction, on his behalf.
Commencement Information
I1Sch. 16 para. 14 in force at 23.1.2003 by S.I. 2003/88, arts. 2, 3