Paragraph 10

United Kingdom

(1)

In paragraph 9 (the “no material interest” requirement) references to a “material interes” in a company are to—

(a)

a material interest in the share capital of the company, or

(b)

a material interest in its assets.

(2)

A material interest in the share capital of a company means—

(a)

beneficial ownership of, or

(b)

the ability to control (directly or through the medium of other companies or by any other indirect means),

more than F130% of the ordinary share capital of the company.

(3)

A material interest in the assets of a company means—

(a)

possession of, or

(b)

an 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 30% of the assets that would then be available for distribution among the participators.

(4)

In this paragraph “participator” has the meaning given by F2section 454 of CTA 2010.

(5)

This paragraph is supplemented by paragraph 11 (material interest: options etc.).

Annotations

Textual amendments

F1: Word in Sch. 4 para. 10(2)(3) substituted (with effect in accordance with Sch. 2 para. 44(2)(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 44(1)
F2: Words in Sch. 4 para. 10(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 398(3) (with Sch. 2)