PART 3

Annual tax on enveloped dwellings

Reliefs

Meaning of “10% or greater share in a company”
147
1
This section applies for the purposes of section 146.
2
An individual (“P”) is taken to be entitled to a 10% or greater share in a company (“C”) if P possesses (directly or indirectly) or is entitled to acquire—
a
10% or more of the share capital of C,
b
10% or more of the issued share capital of C,
c
10% or more of the voting power in C,
d
so much of the issued share capital of C as would, on the assumption that the whole of the income of C were distributed among the participators, entitle P to receive 10% or more of the amount so distributed, or
e
such rights as would entitle P, in the event of the winding up of C or in any other circumstances, to receive 10% or more of the assets of C which would then be available for distribution among the participators.
3
Any rights that P or any other person has as a loan creditor are to be disregarded for the purposes of the assumption in subsection (2)(d).
4
For the purposes of subsection (2) a person is treated as entitled to acquire anything which the person—
a
is entitled to acquire at a future date, or
b
will at a future date be entitled to acquire.
5
If a person—
a
possesses any rights or powers on behalf of another person (“A”), or
b
may be required to exercise any rights or powers on A's direction or behalf,
those rights or powers are to be attributed to A.
6
The following are also to be attributed to a person—
a
the rights and powers of any company of which the person has, or the person and associates of the person have, control;
b
the rights and powers of any two or more companies within paragraph (a);
c
the rights and powers of any associate of the person (or of any two or more associates of the person).
7
The rights and powers which are to be attributed under subsection (6)—
a
include those attributed to a company or associate under subsection (5), but
b
do not include those attributed to an associate under subsection (6).
8
A person who does not meet the conditions in subsection (2) is nevertheless treated as having a 10% or greater share in a company if the person exercises, is able to exercise or is entitled to acquire, direct or indirect control over the company's affairs.
9
In this section—
- “associate” has the same meaning as in Part 10 of CTA 2010 (see section 448 of that Act); but for this purpose section 448 is to be read as if the words “or partner” were omitted in subsection (1)(a);
- “control” has the same meaning as in that Part (see section 450 of that Act);
- “loan creditor” has the same meaning as in that Part (see section 453 of that Act);
- “participator” has the same meaning as in that Part (see section 454 of that Act).
S. 147 applied by 2003 c. 14, Sch. 4A para. 5E(9) (as inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 2(4))
Pt. 3 applied (17.7.2014) by Finance Act 2014 (c. 26), s. 223(8)(9)(e)
Pt. 3 modified (temp.) (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 24 para. 2