Paragraph 17

United Kingdom

(1)

For the purposes of paragraph 15 (the “no material interest” requirement) a material interest in a company means—

(a)

beneficial ownership of, or the ability to control, directly or through the medium of other companies or by any other indirect means, more than 25% of the ordinary share capital of the company; or

(b)

where the company is a close company, possession of or entitlement to acquire such rights as would, in the event of the winding up of the company or in any other circumstances, give an entitlement to receive more than 25% of the assets that would then be available for distribution among the participators.

(2)

In this paragraph—

“close company” includes a company that would be a close company but for—
1. (a)
  section 414(1)(a) of the Taxes Act 1988 (exclusion of companies not resident in the United Kingdom), or
2. (b)
  section 415 of that Act (exclusion of certain quoted companies); and
“participator” has the meaning given by section 417(1) of that Act.

(3)

This paragraph is supplemented by paragraph 18 (options etc.) and paragraph 19 (shares held by trustees of approved profit sharing scheme etc.).

Notes on Schedule 8

Textual amendments

F1: Sch. 8 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)