Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraphs 40–41

Meaning of "wholly owned" or "wholly (or almost wholly) owned"

Paragraphs 40 and 41 define what it means for a company to be "wholly owned" or "wholly (or almost wholly) owned" by a collective investment scheme or person for the purposes of this Part of Schedule 5AAA.

• A company is "wholly owned" if the scheme, person, or persons together hold a 100% investment in that company, measured across all relevant tests (voting rights, income entitlement, capital distribution entitlement).
• A company is "wholly (or almost wholly) owned" if the scheme or person either wholly owns it (100% investment) or holds at least a 99% investment in it.
• Investment levels are determined by applying a modified version of the existing investment test in Schedule 1A paragraph 9, with the percentage thresholds raised to 100% or 99% as appropriate and all conditions applied cumulatively rather than alternatively.
• Where the investor is a collective investment scheme rather than an individual or corporate body, the scheme is treated as though it were a single person for the purposes of these ownership tests.