Section 3B — Taxation of Chargeable Gains Act 1992: Participators and their interests

Participators and their interests 3B 1 “ Participator ” has the meaning given by section 454 of CTA 2010.

2 Any reference to a person's interest as a participator in a company is to the interest in it represented by all the factors by reference to which the person is a participator.

3 Any reference to the extent of a person's interest as a participator in a company is to such proportion of the interests as participators of all of the company's participators as, on a just and reasonable basis, is represented by that interest.

4 If—

a the interest of a person in a company is wholly or partly represented by an interest under a settlement (“the beneficial interest”),

and b the beneficial interest is the factor (or one of them) by reference to which the person would, apart from this subsection, have an interest as a participator in the company, that interest as a participator is, so far as represented by the beneficial interest, to be treated instead as the interest of the trustees of the settlement.

5 If—

a exempt assets of a pension scheme are taken into account in ascertaining a person's interest as a participator in a company, and b if those assets were ignored, an amount in respect of a gain accruing to the company would not be apportioned to the person as a result of section 3, no amount in the respect of the gain is to be apportioned to the person as a result of that section.

6 For this purpose—

a “ assets of a pension scheme ” means assets held for the purposes of a fund or scheme to which section 271(1)(c) or (1A) applies, and b those assets are “exempt” if, at the time when the gain accrues, a disposal of those assets would be exempt from tax as a result of either of those provisions.

7 This section applies for the purposes of section 3.