Part VII U.K. Other property, businesses, investments etc.

[F1 Employee-ownership trusts U.K.

Textual Amendments

F1 Ss. 236H-236U and cross-heading inserted (with effect in accordance with Sch. 37 para. 2 of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 1 (with Sch. 37 paras. 3, 4)

236T Further provision about significant and controlling interests U.K.

(1) This section applies for the purposes of—

(a) section 236L(2) (trustees hold a significant interest in C), and

(b) section 236M (controlling interest requirement).

(2) Chapter 6 of Part 5 of CTA 2010 (group relief: equity holders and profits or assets available for distribution) applies as it applies for the purposes of the provisions mentioned in section 157(1) of that Act.

(3) The trustees are to be treated, for the purposes of section 236L(2)(b) or 236M(1)(b), as entitled to dividends on shares even if the trustees are required, or permitted, by the trusts of the settlement to waive their entitlement to those dividends.

(4) In determining whether section 236L(2)(d) or 236M(1)(d) applies, ignore any provision of—

(a) a mortgage or charge (or, in Scotland, a charge or security) granted by the trustees to a third party to secure any debt, or

(b) an agreement in respect of a loan made to the trustees by a third party,

which confers any entitlement on the third party in the event of a default by the trustees in performing their obligations in relation to that debt or loan.

(5) In this section—

• “third party” means a person other than—

  (a)

  C or a member of a group of which C is the principal company,

  (b)

  a person who is, or has at any time in the preceding 12 months been, a participator in C or in a member of such a group, or

  (c)

  a person connected with a person within paragraph (b);

• “close company” and “participator” have the same meaning as in Part 4 of the Inheritance Tax Act 1984 (see section 102 of that Act), and a reference to a participator in a company is, in the case of a company which is not a close company, to be construed as a reference to a person who would be a participator in the company if it were a close company.]

Modifications etc. (not altering text)

C1 S. 236T applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 75A(3) (as inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 37 para. 14(1)(2))

C2 S. 236T applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 86(3A)(b) (as inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 37 para. 15(3)(4))

C3 S. 236T applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 13A(2) (as inserted (with effect in accordance with Sch. 37 para. 10(2) of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 10(1))

C4 S. 236T applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 28A(2) (as inserted (with effect in accordance with Sch. 37 para. 11(2) of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 11(1))