Taxation of Chargeable Gains Act 1992 Schedule 7ZA paragraph 4

Meaning of "investing company"

Paragraph 4 of Schedule 7ZA defines what qualifies as an "investing company" in relation to a person (P) and a joint venture company, by setting out two conditions that must both be met.

• A company is an "investing company" in relation to P and a joint venture company only if it meets both Condition 1 and Condition 2.
• Condition 1 requires that the company is either "company A" (the company whose activities are being attributed under paragraph 3) or that P directly owns some portion of the company's ordinary share capital.
• Condition 2 requires that the company owns some portion of the ordinary share capital of the joint venture company, whether that ownership is direct, indirect, or a combination of both.
• Indirect ownership of share capital for the purposes of Condition 2 is determined in accordance with section 1155 of the Corporation Tax Act 2010.