[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 [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.
F5(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]]
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)
F3Word in Sch. A1 para. 24(2) substituted (with effect in accordance with Sch. 10 para. 12(4) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 12(2)
F4Words in Sch. A1 para. 24(4)(a)(b) substituted (with effect in accordance with Sch. 10 para. 12(4) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 12(3)
F5Sch. A1 para. 24(6) repealed (with effect in accordance with Sch. 10 para. 7(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 7(2), Sch. 40 Pt. 3(3)