SCHEDULES
F1SCHEDULE A1 Application of taper relief
F2Joint enterprise companies: relevant connection
Sch. 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)
24
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.
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 F3persons.
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 F410% or more 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 F410% or more 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.
F56
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Sch. 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