F1SCHEDULE 29ATaxable property held by investment-regulated pension schemes
Part 3Acquisition and holding of taxable property
Exceptions to indirect holding
26
(1)
This paragraph applies to a vehicle in which a pension scheme directly or indirectly holds an interest where—
(a)
the vehicle holds the interest in the property directly by virtue of paragraph 14(3) merely because it does not meet Condition C in paragraph 15(4), and
(b)
sub-paragraph (2) applies in relation to the pension scheme.
(2)
This sub-paragraph applies in relation to the pension scheme if—
(a)
where the pension scheme is an occupational pension scheme, the pension scheme is not, either alone or together with one or more associated persons, deemed to be entitled to 10% or more of the market value of or the income from the property, or
(b)
where the pension scheme is not an occupational pension scheme, no arrangement under the pension scheme, either alone or together with one or more associated persons, is deemed to be so entitled.
(3)
For the purposes of this paragraph the percentage of the market value of or the income from the property to which a person is deemed to be entitled at any time is—
where—
IG is the percentage of the market value of or the income from the property to which the vehicle that holds the interest in the property directly is entitled at that time, and
TTA is the percentage of the total taxable amount that would be apportioned to the person at that time on the assumptions mentioned in sub-paragraph (4).
(4)
Those assumptions are—
(a)
if the person is not the pension scheme, that the person is the pension scheme, and
(b)
in any case, that the person is treated as making an unauthorised payment by virtue of the vehicle coming to hold the interest in the property directly at that time.
(5)
For the definition of “associated person” see paragraph 30.