Finance Act 1978

66 Definition of control of company

(1) In sub-paragraph (7) of paragraph 13 of Schedule 4 to the Finance Act 1975 (under which a person is treated as controlling a company if he controls a majority of the votes capable of being exercised on all questions, or on any particular question, affecting the company) the words " or on any particular question " shall be omitted but after paragraph (b) there shall be inserted “and

(c) where a company has shares or securities of any class giving powers of voting limited to either or both of the following—

(i) the question of winding up the company ;

(ii) any question primarily affecting shares or securities of that class,

the reference in the preceding provisions of this sub-paragraph to all questions affecting the company as a whole shall be read as a reference to all such questions except any in relation to which those powers are capable of being exercised.”

(2) Subsection (1) above applies both for the purposes of the said paragraph 13 (payment of tax by instalments) and for the purposes of the provisions to which the said sub-paragraph (7) applies by virtue of—

(a) paragraph 3(7) or 4(b) or (bb) of Schedule 8 to the said Act of 1975 (relief for agricultural property);

(b) paragraph 13(2) of Schedule 10 to the [1976 c. 40.] Finance Act 1976 (relief for business property); or

(c) section 49(6) of the [1977 c. 36.] Finance Act 1977 (excluded property).

(3) This section does not affect the operation of the said paragraph 13 or of the provisions mentioned in subsection (2) above in relation to any transfer of value made before 20th April 1978.