[F191ECondition 3 for section 91B(6)(b)U.K.
(1)Condition 3 is that there is a scheme or arrangement under which the share and one or more associated transactions are together designed to produce a return which equates, in substance, to the return on an investment of money at a commercial rate of interest.
(2)But Condition 3 is not satisfied if—
(a)Condition 1 in section 91C above is satisfied as respects the share or would, apart from subsection (2) of that section (income producing assets), be so satisfied, or
(b)Condition 2 in section 91D above is satisfied as respects the share or would, apart from subsection (1)(c) of that section (excepted shares), be so satisfied.
(3)In this section “associated transaction” includes entering into, or acquiring rights or liabilities under, any of the following—
(a)a derivative contract;
(b)a contract that would be a derivative contract, apart from paragraph 4(2B) of Schedule 26 to the Finance Act 2002 (trades etc: hedging relationships with shares);
(c)a contract having a similar effect to—
(i)a derivative contract, or
(ii)a contract falling within paragraph (b) above;
(d)a contract of insurance or indemnity.
(4)This section is to be construed as one with section 91B above.]
Textual Amendments
F1Ss. 91C-91E inserted (with effect in accordance with Sch. 7 para. 10(7) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 7 para. 10(4)