SCHEDULES

SCHEDULE 36Promoters of tax avoidance schemes: partnerships

PART 4Interpretation

19Meaning of “controlling member”

1

For the purposes of this Schedule a person (“P”) is a “controlling member” of a partnership at any time when the person has a right to a share of more than half the assets, or of more than half the income, of the partnership.

2

For that purpose there are to be attributed to P any interests or rights of—

a

any individual who is connected with P (if P is an individual), and

b

any body corporate that P controls.

3

An individual is “connected” with P if the individual is—

a

P’s spouse or civil partner;

b

a relative of P;

c

the spouse or civil partner of a relative of P;

d

a relative of P’s spouse or civil partner, or

e

the spouse or civil partner of a relative of P’s spouse or civil partner.

4

In sub-paragraph (3) “relative” means brother, sister, ancestor or lineal descendant.

5

P controls a body corporate (“B”) if P has power to secure—

a

by means of the holding of shares or the possession of voting power in relation to B or any other body corporate, or

b

as a result of any powers conferred by the articles of association or other document regulating that or any other body corporate,

that the affairs of B are conducted in accordance with P’s wishes.

20Meaning of “managing partner”

In this Schedule “managing partner”, in relation to a partnership, means a member of the partnership who directs or is on a day-to-day level in control of, the management of the business of the partnership.

21Power to amend definitions

1

The Treasury may by regulations amend paragraph 19 or 20.

2

Regulations under sub-paragraph (1) may include any amendment of this Schedule that is necessary in consequence of any amendment made by virtue of sub-paragraph (1).