SCHEDULES

F1SCHEDULE 29ATaxable property held by investment-regulated pension schemes

Part 3Acquisition and holding of taxable property

Exceptions to indirect holding

21

(1)

This paragraph applies to a vehicle in which a pension scheme directly or indirectly holds an interest where—

(a)

the vehicle's main activity is the carrying on of a trade, profession or vocation,

(b)

the pension scheme does not, whether alone or together with one or more associated persons, have control of the vehicle, and

(c)

neither a member of the pension scheme nor a person connected with such a member is a controlling director of the vehicle or any other vehicle which holds an interest in the vehicle directly or indirectly.

(2)

But this paragraph does not apply if the purpose or one of the purposes for which the pension scheme holds the interest in the vehicle is to enable a member of the pension scheme or a person connected with such a member to occupy or use the property.

(3)

In sub-paragraph (1)—

(a)

“control” has the same meaning as in F2sections 450 and 451 of the Corporation Tax Act 2010 (reading references in F3those sections to a company as references to the vehicle and references to associates as including associated persons), and

(b)

“controlling director”, in relation to a vehicle, means a director to whom F4section 452(2)(b) of that Act applies (reading the reference to associates in F5section 452(3) of that Act as including associated persons).

(4)

For the purposes of this paragraph a pension scheme or an arrangement under a pension scheme has control of a vehicle if the pension scheme or the arrangement holds such interest as would, if the pension scheme or the arrangement were a person, mean that the person had control of the vehicle.

(5)

F6Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of this paragraph.

(6)

For the definition of “associated person” see paragraph 30.