24(1)Section 259ND of TIOPA 2010 (meaning of “50% investment” and “25% investment”) is amended as follows.U.K.
(2)For subsection (7) substitute—
“(7)P is to be taken to “act together” with T in relation to U if (and only if) subsection (7A) or (7B) applies.
(7A)This subsection applies if—
(a)P and T are party to a partnership agreement that—
(i)it is reasonable to suppose is designed to affect the value of any of T's rights or interest in relation to U, or
(ii)relates to the exercise of any of T's rights in relation to U, or
(b)the same person manages—
(i)some or all of P's rights or interests in relation to U, and
(ii)some or all of T's rights or interests in relation to U.
(7B)This subsection applies if P has a relevant investment in U and—
(a)P and T are connected (within the meaning given by section 163),
(b)for the purposes of influencing the conduct of U's affairs—
(i)P is able to secure that T acts in accordance with P's wishes,
(ii)T can reasonably be expected to act, or typically acts, in accordance with P's wishes,
(iii)T is able to secure that P acts in accordance with T's wishes, or
(iv)P can reasonably be expected to act, or typically acts, in accordance with T's wishes, or
(c)P and T are party to any arrangement that—
(i)it is reasonable to suppose is designed to affect the value of any of T's rights or interests in relation to U, or
(ii)relates to the exercise of any of T's rights in relation to U.
(7C)To determine whether P has a “relevant investment” in U at a particular time, subsections (3) and (4) apply but as if—
(a)for “an X%”, in both places, there were substituted “ a relevant ”, and
(b)for “X% or more”, in each place, there were substituted “ greater than 5% ”.
(7D)For that purpose—
(a)subsection (6) is to be ignored, and
(b)P's rights and interests are to be aggregated with the rights and interests of persons connected to P (within the meaning given by section 1122 of CTA 2010, ignoring subsection (4) of that section).”
(3)In subsection (8)—
(a)omit “But”, and
(b)for “paragraph (d) of subsection (7)” substitute “ paragraph (b) of subsection (7A) ”.