18(1)Paragraph 7 of Schedule 8 to the Taxes Act 1988 (cases in which a personhas a material interest in a company for the purposes of a profit-related payscheme) shall be amended in accordance with this paragraph.U.K.
(2)In sub-paragraph (2) for the words from “in a company” onwards thereshall be substituted— “in a company if he, either on his own or with one or more associates,or if any associate of his with or without such other associates,—
(a)is the beneficial owner of, or able, directly or through the medium ofother companies, or by any other indirect means to control, more than 25 percent. of the ordinary share capital of the company, or
(b)in the case of a close company, possesses, or is entitled to acquire, suchrights as would, in the event of the winding-up of the company or in any othercircumstances, give an entitlement to receive more than 25 per cent. of theassets which would then be available for distribution among the participators”.
(3)In sub-paragraph (3) the second “and” shall be omitted and after thedefinition of “control” there shall be inserted “and
“participator” has the meaning given by section 417(1)”.
(4)This paragraph shall have effect in relation to accounting periodsbeginning after 31st March 1989.