[Part 3 Partnerships]
Taxation of Chargeable Gains Act 1992 (1992 c 12) | Legislation

[Part 3 Partnerships]

[Activities of a company as a member of a partnership

13

(1)     In relation to a disposal of assets consisting of (or of interests in) shares in or securities of a company (“company A”), activities carried on by a company as a member of a partnership are to be treated as not being trading activities of the company (see section 165A(4) and (9)) if P fails either or both of the following—

(a)     the profits and assets test in relation to the partnership (see paragraphs 15 to 20);

(b)     the voting rights test in relation to the partnership (see paragraphs 21 to 23).

(2)     In relation to such a disposal, activities carried on by a company as a member of a partnership are also to be treated as not being trading activities of the company if the company is not a member of the partnership throughout the relevant period.

Meaning of “direct interest company” and “relevant corporate partner”

14

(1)     This paragraph applies for the purposes of this Part.

(2)     A company is a “direct interest company” in relation to P if—

(a)     it is company A (see paragraph 13(1)), or

(b)

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