# The Income Tax (Pension Funds Pooling Schemes) Regulations 1996, Regulation 5: Expenditure qualifying for capital allowances—specification of conditions


(1) The conditions specified for the purposes of regulation 4(3)(f) are those set out in paragraphs (2) to (6).
(2) The first condition is that each participant in the scheme in a relevant period is either—
(a) an enduring participant, or
(b) a participant that is a descendant of a former participant in the scheme which was a participant at the commencement of that period.
(3) The second condition is that, during a relevant period, no participant in the scheme is the successor of more than one former participant which ceased to participate in the scheme—
(a) immediately before the commencement of that period, or
(b) at the time of the commencement of that period, or
(c) at any subsequent time before the end of that period.
(4) The third condition is that during a relevant period—
(a) an enduring participant’s share of the scheme property remains the same as it was at the commencement of that period, and
(b) the share of a participant which is a descendant of a former participant which was a participant at the commencement of the relevant period remains the same as the share of that former participant was at the commencement of that period,
until such time as a cancellation event occurs, or, if earlier, the rights and interests in the scheme property of the participant concerned become the rights and interests in the scheme property of its successor.
(5) The fourth condition is that, immediately after the occurrence of a cancellation event during a relevant period, the ratio that the shares of the scheme property belonging to the participants at that time bear to each other is the same as the ratio that the shares of the scheme property belonging to those participants bore to each other immediately before the occurrence of that event.
(6) The fifth condition is that, following the occurrence of a cancellation event during a relevant period, every participant’s share of the scheme property remains the same as it was immediately after the occurrence of that event or, where a participant is a descendant of a former participant which was a participant immediately after the occurrence of that event, the same as the share of that former participant was at that time, until that period ends or, if earlier, a further cancellation event occurs or the rights and interests in the scheme property of the participant concerned become the rights and interests in the scheme property of its successor.
(7) In this regulation “enduring participant” in relation to a relevant period means a participant which has been a participant since the commencement of that period.

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Source: https://www.legislation.gov.uk/uksi/1996/1585/regulation/5 (the official version)
Page: https://openlegislation.uk/income-tax-pension-funds-pooling-schemes-regulations-1996/regulation-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.