Finance Act 2014

PART 4 Interpretation

Meaning of “controlling member”

19 (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.

Meaning of “managing partner”

20 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.

Power to amend definitions

21 (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).