Finance Act 2004

[F123(1)This paragraph applies to a vehicle in which a pension scheme directly or indirectly holds an interest where—U.K.

(a)Conditions A to C are met in relation to the vehicle, and

(b)paragraph 24 applies to the pension scheme's interest in the vehicle.

(2)Condition A is that—

(a)the total value of the assets held directly by the vehicle is at least £1 million, or

(b)the vehicle holds directly at least three assets which consist of an interest in residential property,

and no asset held directly by the vehicle which consists of an interest in taxable property has a value which exceeds 40% of the total value of the assets held directly by the vehicle.

(3)Condition B is that, if the vehicle is a company—

(a)it is resident in the United Kingdom and is not a close company, or

(b)it is not resident in the United Kingdom and would not be a close company if it were resident in the United Kingdom.

(4)Condition C is that the vehicle does not have as its main purpose, or one of its main purposes, the direct or indirect holding of an animal or animals used for sporting purposes.

(5)For the purposes of sub-paragraph (2)—

(a)assets must be valued in accordance with generally accepted accounting practice,

(b)no account is to be taken of liabilities secured against or otherwise relating to assets (whether generally or specifically), and

(c)where generally accepted accounting practice offers a choice of valuation between cost basis and fair value, fair value must be used.

(6)The Treasury may by order—

(a)increase the amount for the time being specified in paragraph (a) of sub-paragraph (2), or

(b)increase the percentage for the time being specified in that sub-paragraph.]

Textual Amendments

F1Sch. 29A inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 13