[F1[F224(1)This Schedule has effect subject to sub-paragraph (5) below in any case where a company (“the investing company”) has a qualifying shareholding in a joint enterprise company.U.K.
(2)For the purposes of this paragraph, a company is a “joint enterprise company” if, and only if, 75% or more of its ordinary share capital (in aggregate) is held by not more than five companies.
(3)For the purposes of sub-paragraph (2) above the shareholdings of members of a group of companies shall be treated as held by a single company.
(4)For the purposes of this paragraph a company has a “qualifying shareholding” in a joint enterprise company if—
(a)it holds more than 30% of the ordinary share capital of the joint enterprise company, or
(b)it is a member of a group of companies, it holds ordinary share capital of the joint enterprise company and the members of the group between them hold more than 30% of that share capital.
(5)The following shall be treated as having a relevant connection with each other—
(a)the investing company;
(b)the joint enterprise company;
(c)any company having a relevant connection with the investing company;
(d)any company having a relevant connection with the joint enterprise company by virtue of being—
(i)a 51 per cent subsidiary of that company, or
(ii)a member of the same commercial association of companies.
(6)For the purposes of this paragraph “ordinary share capital” has the meaning given by section 832(1) of the Taxes Act.]]
Textual Amendments
F1Sch. A1 inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), s. 121(2), Sch. 20
F2Sch. A1 para. 24 and cross-heading added (with effect in accordance with s. 78(2) of the amending Act) by Finance Act 2001 (c. 9), Sch. 26 para. 7 (with Sch. 3)