C1C2C3C4Part 4Transfer pricing

Annotations:
Modifications etc. (not altering text)
C1

Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)

C4

Pt. 4 excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 129(11) (with s. 147, Sch. 17)

C5CHAPTER 6Balancing payments

Annotations:
Modifications etc. (not altering text)
C5

Pt. 4 Chs. 1 and 3-6 applied (1.4.2022 in relation to accounting periods beginning on or after that date) by Finance Act 2022 (c. 3), s. 51(1), Sch. 9 paras. 3, 4

204Meaning of “capital market condition” in sections 199 and 201

1

For the purposes of section 199(6) or 201(6), the capital market condition is met if—

a

the actual provision forms part of a capital market arrangement,

b

the capital market arrangement involves the issue of a capital market investment,

c

the securities that represent the capital market investment are issued wholly or mainly to independent persons, and

d

the total value of the capital market investments made under the capital market arrangement is at least £50 million.

2

In this section—

  • capital market arrangement” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act),

  • capital market investment” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraphs 2 and 3 of Schedule 2A to that Act), and

  • independent person” means a person—

    1. a

      who is not the disadvantaged person, and

    2. b

      who does not have a participatory relationship with either of the affected persons.

3

In subsection (2) “the disadvantaged person”—

a

for the purposes of the application of this section in relation to section 199(6) has the meaning given by section 199(4), and

b

for the purposes of the application of this section in relation to section 201(6) has the meaning given by section 201(4).

4

For the purposes of subsection (2), a person (“A”) who is a company has a “participatory relationship” with one of the affected persons (“B”) if—

a

one of A and B is directly or indirectly participating in the management, control or capital of the other, or

b

the same person or persons is or are directly or indirectly participating in the management, control or capital of each of A and B.