Section 3B Participators and their interestsF1

(1)

“Participator” has the meaning given by section 454 of CTA 2010.

(2)

Any reference to a person's interest as a participator in a company is to the interest in it represented by all the factors by reference to which the person is a participator.

(3)

Any reference to the extent of a person's interest as a participator in a company is to such proportion of the interests as participators of all of the company's participators as, on a just and reasonable basis, is represented by that interest.

(4)

If—

(a)

the interest of a person in a company is wholly or partly represented by an interest under a settlement (“the beneficial interest”), and

(b)

the beneficial interest is the factor (or one of them) by reference to which the person would, apart from this subsection, have an interest as a participator in the company,

that interest as a participator is, so far as represented by the beneficial interest, to be treated instead as the interest of the trustees of the settlement.

(5)

If—

(a)

exempt assets of a pension scheme are taken into account in ascertaining a person's interest as a participator in a company, and

(b)

if those assets were ignored, an amount in respect of a gain accruing to the company would not be apportioned to the person as a result of section 3,

no amount in the respect of the gain is to be apportioned to the person as a result of that section.

(6)

For this purpose—

(a)

“assets of a pension scheme” means assets held for the purposes of a fund or scheme to which section 271(1)(c) or (1A) applies, and

(b)

those assets are “exempt” if, at the time when the gain accrues, a disposal of those assets would be exempt from tax as a result of either of those provisions.

(7)

This section applies for the purposes of section 3.

Annotations

Textual amendments

F1: Pt. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 2