3(1)Letting of property if the following two conditions are satisfied.U.K.
(2)Condition 1 is that the property is let—
(a)by one member of a group to another, or
(b)by a member of a group to a company the shares in which are stapled to the shares of a member of the group.
(3)Condition 2 is that the property would fall in accordance with generally accepted accounting practice to be described as owner-occupied.
[F1(3A)For the purpose of Condition 2, no account shall be taken of the fact that a property may fall to be described as owner-occupied by reason only of the provision by the company of services to an occupant who—
(a)is in exclusive occupation of the property, and
(b)is not connected with a member of the group (within the meaning given by section 839 of ICTA).]
(4)For the purpose of sub-paragraph (2)(b), shares of one company are stapled to shares of another if in consequence of the nature of the rights attaching to the shares of the one company (including any terms or conditions attaching to the right to transfer the shares) it is necessary or advantageous for a person who has, disposes of or acquires shares of that company also to have, to dispose of or to acquire a holding of shares of the other company.
Textual Amendments
F1Sch. 16 para. 3(3A) inserted (with effect as mentioned in s. 52(2) of the amending Act) by Finance Act 2007 (c. 11), s. 52, Sch. 17 para. 15