SCHEDULES

SCHEDULE 34Promoters of tax avoidance schemes: threshold conditions

PART 2Meeting the threshold conditions: bodies corporate F1and partnerships

Annotations:
Amendments (Textual)
F1

Words in Sch. 34 heading inserted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 4(2)

F2Interpretation

Annotations:
Amendments (Textual)
F2

Sch. 34 paras. 13A-13D substituted for Sch. 34 para. 13 (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 4(3)

13A

1

This paragraph contains definitions for the purposes of this Part of this Schedule.

2

Each of the following is a “relevant body”—

a

a body corporate, and

b

a partnership.

3

Relevant time” means the time referred to in section 237(1A) (duty to give conduct notice to person treated as meeting threshold condition).

4

Relevant threshold condition” means a threshold condition specified in any of the following paragraphs of this Schedule—

a

paragraph 2 (deliberate tax defaulters);

b

paragraph 4 (dishonest tax agents);

c

paragraph 6 (criminal offences);

d

paragraph 7 (opinion notice of GAAR advisory panel);

e

paragraph 8 (disciplinary action against a member of a trade or profession);

f

paragraph 9 (disciplinary action by regulatory authority);

g

paragraph 10 (failure to comply with information notice).

5

A person controls a body corporate if the person has power to secure that the affairs of the body corporate are conducted in accordance with the person's wishes—

a

by means of the holding of shares or the possession of voting power in relation to the body corporate or any other relevant body,

b

as a result of any powers conferred by the articles of association or other document regulating the body corporate or any other relevant body, or

c

by means of controlling a partnership.

F36

Two or more persons together control a body corporate if together they have the power to secure that the affairs of the body corporate are conducted in accordance with their wishes in any way specified in sub-paragraph (5)(a) to (c).

7

A person controls a partnership if the person is a member of the partnership and—

a

has the right to a share of more than half the assets, or more than half the income, of the partnership, or

b

directs, or is on a day-to-day level in control of, the management of the business of the partnership.

8

Two or more persons together control a partnership if they are members of the partnership and together they—

a

have the right to a share of more than half the assets, or of more than half the income, of the partnership, or

b

direct, or are on a day-to-day level in control of, the management of the business of the partnership.

9

Paragraph 19(2) to (5) of Schedule 36 (connected persons etc) applies to a person referred to in sub-paragraph (7) or (8) as if references to “P” were to that person.

10

A person has significant influence over a body corporate or partnership if the person—

a

does not control the body corporate or partnership, but

b

is able to, or actually does, exercise significant influence over it (whether or not as the result of a legal entitlement).

11

Two or more persons together have significant influence over a body corporate or partnership if together those persons—

a

do not control the body corporate or partnership, but

b

are able to, or actually do, exercise significant influence over it (whether or not as the result of a legal entitlement).

12

References to a person being a promoter are to the person carrying on business as a promoter.