# Finance Act 2022, Paragraph 11: Intermediate company

Extent: E+W+S+N.I.

(1) For the purposes of this Part of this Schedule, a company is an “intermediate company” if—
(a) it meets the activity condition in paragraph 13(1), and
(b) it is wholly or almost wholly owned by another category A investor, other than a QAHC, or by other category A investors who are not QAHCs.
(2) For the purposes of sub-paragraph (1), a company is wholly or almost wholly owned by a category A investor, or by category A investors, if that investor has, or those investors between them have, a 99% investment in the company.
(3) Whether a category A investor has, or category A investors between them have, a 99% investment in a company is determined by applying paragraph 9 of Schedule 1A to TCGA 1992 (meaning of “25% investment”) as if—
(a) in sub-paragraph (1) of that paragraph—
(i) for the words before paragraph (a) there were substituted “A category A investor or category A investors together (“P”) has or have a 99% investment in a company (“C”) if all of the following conditions are met—”;
(ii) paragraph (a) were omitted;
(iii) in each of paragraphs (b), (c) and (d), for “25%” there were substituted “99%”;
(iv) for the “or” at the end of paragraph (c) there were substituted “and”;
(b) in sub-paragraph (7), “or indirect” were omitted in both places it occurs;
(c) sub-paragraphs (8) and (9) were omitted;
(d) any reference to a person, other than the references in sub-paragraph (11) of that paragraph, included a qualifying fund that is transparent (within the meaning given by paragraph 6(7)), and any interests of its participants that are held through the fund were interests of the fund itself;
(e) paragraph 10 of that Schedule were omitted.

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Source: https://www.legislation.gov.uk/ukpga/2022/3/schedule/2/paragraph/11 (the official version)
Page: https://openlegislation.uk/finance-act-2022/schedule-2/paragraph-11
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.