Taxation of Chargeable Gains Act 1992

[F1 5 (1) A company is not to be treated as a closely-held company if condition A or B is met. U.K.

(2) Condition A is that the company cannot be treated as a closely-held company except by taking, as one of the 5 or fewer participators requisite for its being so treated, a person which is a diversely-held company.

(3) Condition B is that the company—

(a) would not be a closely-held company were it not for paragraph (a) of paragraph 2(3) or paragraph (d) of paragraph 7(2), and

(b) would not be a closely-held company if the references in paragraphs 2(3)(a) and 7(2)(d) to participators did not include loan creditors which are diversely-held companies or qualifying institutional investors.

(4) In this paragraph “qualifying institutional investor” means any of the following persons—

(a) a scheme (as defined in section 14F(7)) which is a widely-marketed scheme;

(b) the trustee or manager of a qualifying pension scheme;

(c) a company carrying on life assurance business (as defined in section 56 of the Finance Act 2012);

(d) a person who cannot be liable for corporation tax or income tax (as relevant) on the ground of sovereign immunity.

(5) In sub-paragraph (4)(b) “qualifying pension scheme” means a pension scheme (as defined in section 150(1) of the Finance Act 2004) other than—

(a) an investment-regulated pension scheme within the meaning of Part 1 of Schedule 29A to that Act, or

(b) a pension scheme that would be an investment-regulated pension scheme if it were a registered pension scheme.

(6) The Treasury may by regulations amend sub-paragraphs (4) and (5).

(7) Regulations under sub-paragraph (6) may make incidental, consequential, supplementary or transitional provision or savings.]

Textual Amendments

F1 Sch. C1 inserted (with effect in accordance with Sch. 7 para. 60 of the amending Act) by Finance Act 2015 (c. 11), Sch. 7 para. 37