SCHEDULES

SCHEDULE 15 The corporate venturing scheme

Part III The issuing company

Excluded activities: provision of facilities for another business

33

1

Providing services or facilities for a business carried on by another person is an excluded activity if—

a

the business consists to a substantial extent of excluded activities within sub-paragraph 26(1), and

b

a controlling interest in the business is held by a person who also has a controlling interest in the business carried on by the company providing the services or facilities.

2

Sub-paragraphs (3) to (5) define what is meant by a controlling interest in a business for the purposes of sub-paragraph (1)(b).

3

In the case of a business carried on by a company, a person has a controlling interest if—

a

he controls the company,

b

the company is a close company and he or an associate of his, being a director of the company, either—

i

is the beneficial owner of more than 30% of the ordinary share capital of the company, or

ii

is able, directly or through the medium of other companies or by any other indirect means, to control more than 30% of that share capital,

or

c

not less than half of the business could, in accordance with F1section 942 of CTA 2010, be regarded as belonging to him for the purposes of F2section 941 of that Act.

4

In any other case, a person has a controlling interest in a business if he is entitled to not less than half of the assets used for, or of the income arising from, the business.

5

For the purposes of sub-paragraph (3)(a) the question whether a person controls a company shall be determined in accordance with F3sections 450 and 451 of CTA 2010.

6

For the purposes of this paragraph—

a

there shall be attributed to any person any rights or powers of any other person who is an associate of his, and

b

“business” includes any trade, profession or vocation.