The “individual-owners" requirementU.K.
18(1)The “individual-owners" requirement is that, throughout the qualification period relating to the relevant shares, at least 20% of the ordinary share capital of the issuing company is beneficially owned by one or more independent individuals.U.K.
(2)For the purposes of sub-paragraph (1) “independent individual” means an individual who is not, at any time during that period when he holds ordinary shares in the issuing company—
(a)a director or employee of—
(i)the investing company, or
(ii)any company connected with that company, or
(b)a relative of such a director or employee.
For this purpose “relative” means [F1spouse or civil partner], parent or remoter forebear or child or remoter issue.
(3)Where part of the ordinary share capital of the issuing company forms part of the estate of a deceased person who immediately before his death—
(a)was the beneficial owner of the shares in question, and
(b)was an independent individual for the purposes of sub-paragraph (1),
the shares in question shall, by virtue of this sub-paragraph, continue to be treated as beneficially owned by an independent individual for the purposes of sub-paragraph (1) until such time as they cease to form part of the deceased’s estate.
Textual Amendments
F1Words in Sch. 15 para. 18(2)(b) substituted (5.12.2005) by Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 132