(1)This section applies for the purposes of sections 80 and 86(2).
(2)In this section “the first party” and “the second party” mean—
(a)where this section applies for the purposes of section 80, C and P (within the meaning of section 80) respectively, and
(b)where this section applies for the purposes of section 86(2), the foreign company and A (within the meaning of section 86) respectively.
(3)The participation condition is met in relation to the first party and the second party (“the relevant parties”) if—
(a)condition A is met in relation to the material provision so far as the material provision is provision relating to financing arrangements, and
(b)condition B is met in relation to the material provision so far as the material provision is not provision relating to financing arrangements.
(4)Condition A is that, at the time of the making or imposition of the material provision or within the period of 6 months beginning with the day on which the material provision was made or imposed—
(a)one of the relevant parties was directly or indirectly participating in the management, control or capital of the other, or
(b)the same person or persons was or were directly or indirectly participating in the management, control or capital of each of the relevant parties.
(5)Condition B is that, at the time of the making or imposition of the material provision—
(a)one of the relevant parties was directly or indirectly participating in the management, control or capital of the other, or
(b)the same person or persons was or were directly or indirectly participating in the management, control or capital of each of the relevant parties.
(6)In this section “financing arrangements” means arrangements made for providing or guaranteeing, or otherwise in connection with, any debt, capital or other form of finance.
(7)For the purposes of this section—
(a)section 157(2) of TIOPA 2010 (“direct participation”) applies, and
(b)sections 158 to 163 of that Act (“indirect participation” in management, control or capital of a person) apply as if in those sections—
(i)references to section 148(2) of that Act included references to subsection (4) of this section,
(ii)references to paragraph (a) or (b) of section 148(2) of that Act included (respectively) references to paragraph (a) or (b) of subsection (4) of this section,
(iii)references to section 148(3) of that Act included references to subsection (5) of this section, and
(iv)references to paragraph (a) or (b) of section 148(3) of that Act included (respectively) references to paragraph (a) or (b) of subsection (5) of this section.