SCHEDULES
F1SCHEDULE 29ATaxable property held by investment-regulated pension schemes
Part 3Acquisition and holding of taxable property
Indirect holding
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1
For the purposes of the taxable property provisions a person holds an interest in property indirectly if the person does not hold the interest directly but (whether jointly, in common or alone)—
a
holds an interest in a person who holds the interest in the property directly, or
b
holds an interest in a person who holds the interest in the property indirectly by virtue of paragraph (a) or this paragraph.
2
For the purposes of the taxable property provisions a person holds an interest in another person if—
a
the person holds an interest, right or power in or over that other person, or
b
the person lends money to that other person to fund the acquisition by that other person of an interest in taxable property.
3
But sub-paragraph (2)(b) does not apply where—
a
the loan is an authorised employer loan made by a pension scheme to or in respect of a sponsoring employer (see section 179),
b
the interest in the property is acquired so that the property may be used for the purposes of a trade, profession or vocation carried on by the sponsoring employer or for the purposes of the sponsoring employer's administration or management, and
c
after the acquisition, the property is not occupied or used by a member of the pension scheme or a person connected with such a member.
4
In the taxable property provisions references to a person holding an interest in another person include, in the case of—
a
an investment-regulated pension scheme,
b
an arrangement under a pension scheme, or
c
a trust which is not a pension scheme,
references to the interest in the other person being held for the purposes of the pension scheme, the arrangement or the trust.
5
Paragraphs 17 to 19 explain what it means for a person to hold an interest in another person by virtue of sub-paragraph (2)(a) in a case where that other person is a company, collective investment scheme or trust.
6
The Treasury may by regulations—
a
amend paragraphs 17 to 19, or
b
amend this Part of this Schedule for the purposes of explaining what it means for a person to hold an interest, right or power in or over another person in other cases.
7
This paragraph is subject to paragraphs 20 to 26.
Sch. 29A inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 13