Finance Act 2012

5 (1) Section 287 (maximum qualifying investment requirement) is amended as follows. U.K.

(2) In subsection (1), after “that” insert “ , if the condition in subsection (1A) is met, ”.

(3) After that subsection insert—

“(1A) The condition is that—

(a) at the time of the issue of the relevant holding the relevant company or any of its qualifying subsidiaries was a member of a partnership or a party to a joint venture,

(b) the trade which meets the requirement of section 291 was at that time being carried on, or to be carried on, by those partners in partnership or by the parties to the joint venture, and

(c) the other partners or parties to the joint venture include at least one other company.”

(4) In subsection (2)—

(a) for “Subject to subsection (7), the” substitute “ The ”, and

(b) after “exceeds” insert “ the relevant fraction of ”.

(5) After that subsection insert—

“(2A) The relevant fraction is—

where “N” is the number of companies (including the relevant company) which, at the time when the relevant holding was issued were members of the partnership or, as the case may be, parties to the joint venture.”

(6) Omit subsections (6) and (7).