Income Tax Act 2007

Conditions relating to value of investments

65 (1) Sub-paragraph (2) applies if any question arises which—

(a) would otherwise fall to be determined in accordance with section 278, and

(b) is a question whether, in a case where a company (“company A”) holds investments in a company (“company B”) immediately before 6 April 2007, the 15% holding condition is met if there is an addition to the holding on or after that date.

(2) Any such question is to be determined in accordance with—

(a) section 842AA(11)(c) of ICTA, and

(b) section 842(3) and (4) of that Act as applied by that provision,

until such time as company A ceases to hold investments in company B.

(3) Except in a case to which sub-paragraph (2) applies, section 278(5) applies in relation to investments issued before 17 April 2002 with the following modifications—

(a) the insertion after “reconstruction”, in the first place where it occurs, of “or amalgamation”, and

(b) the omission of the words from “In this subsection” to the end.