Paragraph 18 Investments held by investment managers

Section 454A (investments held by investment managers) is amended as follows.

In subsection (1)(a), for “is a member of a worldwide group” substitute “would, apart from this section, be a member of a worldwide group”.

After subsection (1) insert—

“(1A)

Except in a case within subsection (2), for the purposes of this Part—

(a)

the group does not include S (or its subsidiaries), and

(b)

accordingly, none of those entities is regarded as a consolidated subsidiary of any member of the group.”

In subsection (2), for “For the purposes of this Part” substitute “Where S is a partnership or another transparent entity, for the purposes of this Part”.