11(1)For the purposes of this Part of this Schedule, a company is an “intermediate company” if—
(a)it meets the activity condition in paragraph 13(1), and
(b)it is wholly or almost wholly owned by another category A investor, other than a QAHC, or by other category A investors who are not QAHCs.
(2)For the purposes of sub-paragraph (1), a company is wholly or almost wholly owned by a category A investor, or by category A investors, if that investor has, or those investors between them have, a 99% investment in the company.
(3)Whether a category A investor has, or category A investors between them have, a 99% investment in a company is determined by applying paragraph 9 of Schedule 1A to TCGA 1992 (meaning of “25% investment”) as if—
(a)in sub-paragraph (1) of that paragraph—
(i)for the words before paragraph (a) there were substituted “A category A investor or category A investors together (“P”) has or have a 99% investment in a company (“C”) if all of the following conditions are met—”;
(ii)paragraph (a) were omitted;
(iii)in each of paragraphs (b), (c) and (d), for “25%” there were substituted “99%”;
(iv)for the “or” at the end of paragraph (c) there were substituted “and”;
(b)in sub-paragraph (7), “or indirect” were omitted in both places it occurs;
(c)sub-paragraphs (8) and (9) were omitted;
(d)any reference to a person, other than the references in sub-paragraph (11) of that paragraph, included a qualifying fund that is transparent (within the meaning given by paragraph 6(7)), and any interests of its participants that are held through the fund were interests of the fund itself;
(e)paragraph 10 of that Schedule were omitted.