Section 397C Meaning of “minority shareholder”
|
|
 |
£8.04 on Kindle |
 |
£20 eBook download |
Amendments
Section 397C inserted by Finance Act 2008 section 34 and Schedule 12 Part 1 para 4 for 2008-09 and later tax years.
(1) In [section 397AA]1 “minority shareholder”, in relation to a ...2 company, means a person whose shareholding in the company is less than 10% of the company’s issued share capital.
Amendments
1 Substituted by Finance Act 2009 section 40 and Schedule 19 para 6(2) with effect in accordance with the provisions specified in Schedule 19 para 14.
2 Omitted by Finance Act 2009 section 40 and Schedule 19 para 6(2) with effect in accordance with the provisions specified in Schedule 19 para 14.
(1A) Where the company has more than one class of share, the reference in subsection (1) to the company’s issued share capital is to issued share capital of the same class as the share in respect of which the distribution is made.
Amendments
Subs (1A) inserted by Finance Act 2009 section 40 and Schedule 19 para 6(3) with effect in accordance with the provisions specified in Schedule 19 para 14.
(2) Subsections (3) to (6) make provision about the circumstances in which shares form part of a person’s shareholding in a company for the purposes of this section.
(3) Shares form part of a person’s shareholding in a company to the extent that the person is beneficially entitled to the shares or to a distribution arising in respect of the shares (or both).
(4) Shares form part of a person’s shareholding in the company where—
(a) a person is a settlor in relation to a settlement, and
(b) income arising from shares comprised in the settlement is treated for income tax purposes as the income of that person and of that person alone.
(5) Shares form part of the shareholding in a company of a person (“P”) if—
(a) they form part of the shareholding in the company of a person connected with P,
(b) P transferred the shares to the connected person or arranged for the connected person to acquire the shares, and
(c) the purpose of the transfer or arrangement was wholly or mainly to enable P to avoid tax.
(6) Shares form part of a person’s shareholding in a company if that person has transferred the shares to another person under a repo or stock lending arrangement.
(7) In this section—
“repo” has the same meaning as in Part 11 of ITA 2007 (see section 569 of that Act),
“settlement” and “settlor” have the same meaning as in Chapter 5 of Part 5 of this Act, and
“stock lending arrangement” has the same meaning as in Part 11 of ITA 2007 (see section 568 of that Act).
(8) For the purposes of this section, shares are not of the same class if the amounts paid up on them (otherwise than by way of premium) are different.
Amendments
Subs (8) inserted by Finance Act 2009 section 40 and Schedule 19 para 6(4) with effect in accordance with the provisions specified in Schedule 19 para 14.
|
|
