SCHEDULES
F1SCHEDULE 7ACExemptions for disposals by companies with substantial shareholding
Part 2The substantial shareholding requirement
Meaning of “substantial shareholding"
8
1
For the purposes of this Schedule a company holds a “substantial shareholding” in another company if it holds shares or interests in shares in that company by virtue of which—
a
it holds not less than 10% of the company’s ordinary share capital,
b
it is beneficially entitled to not less than 10% of the profits available for distribution to equity holders of the company, and
c
it would be beneficially entitled on a winding up to not less than 10% of the assets of the company available for distribution to equity holders.
This is without prejudice to what is meant by “substantial” where the word appears in other contexts.
2
Schedule 18 to the Taxes Act 1988 (meaning of equity holder and determination of profits or assets available for distribution) applies for the purposes of sub-paragraph (1).
3
In that Schedule as it applies for those purposes—
a
for any reference to sections 403C and 413(7) of that Act, or either of those provisions, substitute a reference to sub-paragraph (1) above;
b
omit the words in paragraph 1(4) from “but" to the end;
c
omit paragraph 5(3) and paragraphs 5B to 5F; and
d
omit paragraph 7(1)(b).
Sch. 7AC inserted (with effect in accordance with s. 44(3)(4) of the amending Act) by Finance Act 2002 (c. 23), Sch. 8 para. 1