# Taxation of Chargeable Gains Act 1992, Paragraph 3B


(1) This paragraph applies for the purposes of paragraph 3A.
(2) A person “owns” ordinary share capital if the person owns it—
(a) directly,
(b) indirectly, or
(c) partly directly and partly indirectly.
(3) Sections 1155 to 1157 of CTA 2010 (meaning of “indirect ownership” and calculation of amounts owned indirectly) apply for the purposes of sub-paragraph (2).
(4) For the purposes of sections 1155 to 1157 of CTA 2010 as applied by sub-paragraph (3)—
(a) ordinary share capital may not be owned through a disqualified listed company;
(b) treat references to a body corporate
(i) as including an exempt unauthorised unit trust (and references to ordinary share capital, in the case of such a trust, as references to units in the trust)
(ii) as including an exempt Reserved Investor Fund (Contractual Scheme) (and references to ordinary share capital, in the case of such a scheme, as references to units in the scheme).
(5) A person is also to be regarded as owning ordinary share capital in a company in circumstances where a person would, under paragraphs 12 and 13 of this Schedule, be regarded as holding shares in a company.
(6) Where the assets of a partnership include ordinary share capital of a company, each partner is to be regarded as owning a proportion of that share capital equal to the partner's proportionate interest in that ordinary share capital.
(6A) Sub-paragraph (6) does not apply in relation to a co-ownership scheme which is treated as a partnership under section 103DC (co-ownership schemes which are to be treated as partnerships).
(7) In this Schedule—
“exempt Reserved Investor Fund (Contractual Scheme)” means a Reserved Investor Fund (Contractual Scheme) which meets the exempt investor condition in regulation 14 of the Co-ownership Contractual Schemes (Tax) Regulations 2025;
“exempt unauthorised unit trust” has the same meaning as in regulation 3 of the Unauthorised Unit Trusts (Tax) Regulations 2013.

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Source: https://www.legislation.gov.uk/ukpga/1992/12/schedule/7ac/paragraph/3B (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/schedule-7ac/paragraph-3B
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.