Part 5Electricity generator levy
Groups, partnerships and joint ventures
292Qualifying joint ventures
1
For the purposes of this Part a company (“C”) is a “qualifying joint venture” if—
a
C is not a member of a group other than a group of which it is the principal member, and
b
there are five or fewer persons who between them—
i
hold 75% or more of C’s ordinary share capital, or
ii
in a case where C does not have ordinary share capital, are beneficially entitled to 75% or more of C's profits available for distribution to equity holders of C.
2
In determining whether there are five or fewer such persons as are mentioned in subsection (1)(b), the members of a group are treated as if they were a single company.
3
A company (“P”) that is not a member of a group is a participant in a qualifying joint venture (“V”) if—
a
P holds 10% or more of V’s ordinary share capital, or
b
in a case where V does not have ordinary share capital, P is beneficially entitled to 10% or more of V's profits available for distribution to equity holders of V.
4
A group of companies is a participant in a qualifying joint venture (“V”) if—
a
a member of that group, or two or more members between them, hold 10% or more of V’s ordinary share capital, or
b
in a case where V does not have ordinary share capital, a member of the group is, or two or more members between them are, beneficially entitled to 10% or more of V's profits available for distribution to equity holders of V.
5
Where a participant in a qualifying joint venture is not a generating undertaking, the participant is to be treated as a generating undertaking for the purposes of this Part.