HC Deb 11 July 1984 vol 63 cc1327-8

12A.—(1) The provisions of this part of this Schedule have effect for the purposes of paragraph (bb) of subsection (1) of section 81 of this Act.

(2) Subject to paragraph 12B below, a controlled foreign company fulfils the public quotation condition with respect to a particular accounting period if— (a) shares in the company carrying not less than 35 per cent. of the voting power in the company (and not being shares entitled to a fixed rate of dividend, whether with or without a further right to participate in profits) have been allotted unconditionally to, or acquired unconditionally by, the public and, throughout that accounting period, are beneficially held by the public; and (b) within the period of twelve months ending at the end of the accounting period any such shares have been the subject of dealings on a recognised stock exchange situated in the territory in which the company is resident; and (c) within that period of twelve months the shares have been quoted in the official list of such a recognised stock exchange.

12B.—(1) The condition in paragraph 12A(2) above is not fulfilled with respect to an accounting period of a controlled foreign company if at any time in that period the total percentage of the voting power in the company possessed by all of the company's principal members exceeds 85 per cent.

(2) For the purposes of paragraph 12A(2) above, shares in a controlled foreign company shall be deemed to be beneficially held by the public if they are held by any person other than— (a) a person connected or associated with the company; or (b)a principal member of the company; and a corresponding construction shall be given to the reference to shares which have been allotted unconditionally to, or acquired unconditionally by, the public.

12C. — (1) References in this Part of this Schedule to shares held by any person include references to any shares the rights or powers attached to which could, for the purposes of section 302 of the Taxes Act (meaning of "control") be attributed to that person under subsection (5) of that section (nominees).

(2) For the purposes of this Part of this Schedule— (a) a person is a principal member of a controlled foreign company if he possesses a percentage of the voting power in the company of more than 5 per cent. and,—

  1. (i) where there are more than five such persons, if he is one of the five persons who possess the greatest percentages, or
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  2. (ii) if, because two or more persons possess equal percentages of the voting power in the company, there are no such five persons, he is one of the six or more persons (so as to include those two or more who possess equal percentages) who possess the greatest percentages; and
(b) a principal member's holding consists of the shares which carry the voting power possessed by him.

(3) In arriving at the voting power which a person possesses, there shall be attributed to him any voting power which, for the purposes of section 302 of the Taxes Act, would be attributed to him under subsection (5) or subsection (6) of that section (nominees, controlled companies and associates).

(4) In this Part of this Schedule "share" includes "stock".' —[Mr. Ian Stewart.]

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