11(1)A scheme satisfies the requirements of this paragraph if it includes a transaction or a series of transactions under which a person (“the transferor”)—U.K.
(a)transfers rights to receive a payment under a relevant security to one or more other persons, or
(b)otherwise secures that one or more other persons are similarly benefited,
and sub-paragraphs (3) and (4) are satisfied.
(2)A person is similarly benefited for these purposes if he receives a payment which would, but for the transaction or series of transactions, have arisen to the transferor.
(3)This sub-paragraph is satisfied if—
(a)the transferor, and
(b)at least one of the persons to whom a transfer of rights is made or a similar benefit is secured,
are connected with each other.
(4)This sub-paragraph is satisfied if following the transfer of rights or the securing of the similar benefit—
(a)two or more persons either hold rights to receive a payment under the security or enjoy a similar benefit, and
(b)the rights held and benefits enjoyed by such of those persons as are connected have, taken together, a value equal to or greater than the value of any other rights to receive a payment under the security and of any other similar benefits, taken together.
(5)In sub-paragraph (4)(b) references to the value of rights to receive a payment under a relevant security are references to the market value of those rights; and references to the value of similar benefits are to be construed accordingly.
(6)In this paragraph a relevant security is—
(a)a security (within the meaning of Part 6 of ICTA), or
(b)any agreement under which a person receives an annuity or other annual payment (whether it is payable annually or at shorter or longer intervals) for a term which is not contingent on the duration of a human life or lives.