Taxation (International and Other Provisions) Act 2010 section 465

Attribution of rights and interests

Section 465 sets out the rules for attributing the rights and interests of connected persons, partners, persons acting together, and parties to qualifying arrangements to a person when determining whether that person has a 25% investment in another entity under section 464.

• When determining a person's investment in another entity, that person is treated as holding the rights and interests of connected persons and certain partners (and persons connected with those partners).
• A person is also treated as holding the rights and interests of anyone with whom they "act together" in relation to the target entity — for example, where one can direct the other's actions, where they have arrangements affecting the value of equity, or where the same person manages their equity holdings.
• A person is further treated as holding the rights and interests of parties to a "qualifying arrangement" — an arrangement under which the parties can be expected to act together to exert greater influence over, or achieve outcomes in relation to, the target entity than any one of them could achieve alone.
• An exception applies where the same fund manager manages equity in the target entity on behalf of different persons but does so through separate collective investment schemes whose management is not coordinated to influence the target entity's affairs.