SCHEDULES
SCHEDULE 3Qualifying scheme
Part 4Schemes involving hybrid effect and connected persons
Schemes involving hybrid effect and connected persons
9
A scheme falls within this Part if it satisfies the requirements of paragraph 10 or 11.
Scheme including transfer of rights under a security
11
1
A scheme satisfies the requirements of this paragraph if it includes a transaction or a series of transactions under which a person (“the transferor”)—
a
transfers rights to receive a payment under a relevant security to one or more other persons, or
b
otherwise secures that one or more other persons are similarly benefited,
and sub-paragraphs (3) and (4) are satisfied.
2
A person is similarly benefited for these purposes if he receives a payment which would, but for the transaction or series of transactions, have arisen to the transferor.
3
This sub-paragraph is satisfied if—
a
the transferor, and
b
at least one of the persons to whom a transfer of rights is made or a similar benefit is secured,
are connected with each other.
4
This sub-paragraph is satisfied if following the transfer of rights or the securing of the similar benefit—
a
two or more persons either hold rights to receive a payment under the security or enjoy a similar benefit, and
b
the rights held and benefits enjoyed by such of those persons as are connected have, taken together, a value equal to or greater than the value of any other rights to receive a payment under the security and of any other similar benefits, taken together.
5
In sub-paragraph (4)(b) references to the value of rights to receive a payment under a relevant security are references to the market value of those rights; and references to the value of similar benefits are to be construed accordingly.
6
In this paragraph a relevant security is—
a
a security (within the meaning of Part 6 of ICTA), or
b
any agreement under which a person receives an annuity or other annual payment (whether it is payable annually or at shorter or longer intervals) for a term which is not contingent on the duration of a human life or lives.
Interpretation
12
Section 839 of ICTA has effect for the purposes of this Part.