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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—

[F5(6)References in paragraph 4 above, in relation to an hotel, to a comparable establishment are references to a guest house, hostel or other establishment the main purpose of maintaining which is the provision of facilities for overnight accommodation (whether with or without catering services).

(7)References in this paragraph to an interest in land do not include references to—

(a)the interest of a creditor (other than a creditor in respect of a rentcharge) whose debt is secured by way of mortgage, an agreement for a mortgage or a charge of any kind over land; or

(b)in the case of land in Scotland, the interest of a creditor in a charge or security of any kind over land.]]]

Textual Amendments

F1Sch. 28B para. 5(1): definition of "nursing home" inserted (with effect in accordance with Sch. 12 para. 5(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 12 para. 4(1)

F2Sch. 28B para. 5(1): definition of "property development" inserted (with effect in accordance with Sch. 12 para. 5(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 12 para. 4(2)

F3Sch. 28B para. 5(1): definition of "residential care home" inserted (with effect in accordance with Sch. 12 para. 5(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 12 para. 4(3)

F4Sch. 28B para. 5(5): definition of "interest in land" inserted (with effect in accordance with Sch. 12 para. 5(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 12 para. 4(4)

F5Sch. 28B para. 5(6)(7) inserted (with effect in accordance with Sch. 12 para. 5(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 12 para. 4(5)

Marginal Citations