SCHEDULES

SCHEDULE 28BU.K. Venture Capital Trusts: Meaning of “qualifying holdings”

Provisions supplemental to paragraph 4U.K.

5(1)In paragraph 4 above—

(2)For the purposes of paragraph 4 above, in the case of a trade carried on by a company, a person has a controlling interest in that trade if—

(a)he controls the company;

(b)the company is a close company and he or an associate of his, being a director of the company, either—

(i)is the beneficial owner of more than 30 per cent. of the ordinary share capital of the company, or

(ii)is able, directly or through the medium of other companies or by any other indirect means, to control more than 30 per cent. of that share capital;

or

(c)not less than half of the trade could, in accordance with section 344(2), be regarded as belonging to him for the purposes of section 343;

and, in any other case, a person has a controlling interest in a trade if he is entitled to not less than half of the assets used for, or of the income arising from, the trade.

(3)For the purposes of sub-paragraph (2) above there shall be attributed to any person any rights or powers of any other person who is an associate of his.

(4)References in paragraph 4 above or this paragraph to a trade, except the references in paragraph 4(2)(f) to the trade for which services or facilities are provided, shall be construed without reference to so much of the definition of trade in section 832(1) as relates to adventures or concerns in the nature of trade; and those references in paragraph 4(2)(f) above to a trade shall have effect, in relation to cases in which what is carried on is carried on by a person other than a company, as including references to any business, profession or vocation.

(5)In this paragraph—

Marginal Citations