Amendment made: No. 97, in page 49, line 8, at end insert—
'( ) After paragraph 22 insert—
"Qualifying shareholdings in joint venture companies
23.—(1) This Schedule has effect subject to the following provisions where a company ('the investing company') has a qualifying shareholding in a joint venture company.
(2) For the purposes of this paragraph a company is a 'joint venture company' if, and only if—
For the purposes of paragraph (b) above the shareholdings of members of a group of companies shall be treated as held by a single company.
(3) For the purposes of this paragraph a company has a 'qualifying shareholding' in a joint venture company if—
(4) For the purpose of determining whether the investing company is a trading company—
This sub-paragraph does not apply if the investing company is a holding company.
(5) For the purpose of determining whether the investing company is a holding company—
This sub—paragraph does not apply if the joint venture company is a 51 per cent subsidiary of the investing company.
(6) For the purpose of determining whether a group of companies is a trading group—
This sub-paragraph does not apply if the joint venture company is a member of the group.
(7) In sub-paragraphs (4)(b), (5)(b) and (6)(b) above 'an appropriate proportion' means a proportion corresponding to the percentage of the ordinary share capital of the joint venture company held by the investing company or, as the case may be, by the group member concerned.
(8) The following shall be treated as having a relevant connection with each other—
(9) The acquisition by the investing company of the qualifying shareholding shall not be treated as a relevant change of activity for the purposes of paragraph 11 above.
(10) For the purposes of this paragraph 'ordinary share capital' has the meaning given by section 832(1) of the Taxes Act.".'.— [Miss Melanie Johnson.]