Schedules

Schedule 7Real Estate Investment Trusts

3Non-close condition

1

Section 528 is amended as follows.

2

In subsection (4)—

a

in the words before paragraph (a), after “company” insert “meets the non-close condition.”, and

b

omit paragraphs (a) and (b).

3

After subsection (4B) insert—

4C

The non-close condition is met—

a

in relation to a company, if—

i

it is not a close company, or

ii

it is a close company but only because it has an institutional investor as a direct or indirect participator, and

b

in relation to a person or scheme other than a company, if it would fall within paragraph (a)(i) or (ii) if—

i

the person’s business or the scheme were a company, and

ii

the interests of persons in the business or scheme were shares in the company.

4

In subsection (5), for “subsection (4)(a)” substitute “determining whether the non-close condition is met”.

5

After subsection (5A) (as inserted by paragraph 4) insert—

5B

For the purposes of subsection (4C)(a)(ii)—

a

a person is a “direct participator” if the person is a participator for the purposes of Part 10 of CTA 2010 (see section 454), and

b

a person is an “indirect” participator in a company if the person has a share or interest in the capital or income of the company through another body corporate or other bodies corporate.

5C

In determining whether a person is an indirect participator—

a

reference to having a share or interest in the capital or income of a company through a body corporate is to be read in accordance with sub-paragraphs (9) and (10) of paragraph 46 of Schedule 5AAA to TCGA 1992 (meaning of direct or indirect participator), and

b

a person is regarded for the purposes of those sub-paragraphs, and for the purposes of subsection (5B)(b) of this section, as having a share or interest in the capital or income of a company if the person would be a participator in the company as a result of section 454(2) of CTA 2010.

6

Section 528 has effect, and is to be deemed always to have had effect, with the amendments made by this paragraph.