INTM620790 | Offshore Receipts in respect of Intangible Property (ORIP): Glossary of terms: Meaning of direct or indirect participation in management, control or capital

ITTOIA05/Ch2A/S608V

This section applies for the purposes of s608T.

Direct participation

This is determined by s157 TIOPA10 which states that a person (P) is directly participating in the management, control or capital of another person (C) at a particular time if, at that time, C is a body corporate or a firm and is controlled by P.

Indirect participation

This is determined by s159 or s160 TIOPA10. Indirect participation takes account of rights and powers that a person (P) will acquire, or will become entitled to acquire at a future date, and rights and powers exercised by another person on P’s behalf, or by a person who is connected to P.

Indirect participation also includes situations in which a person (P) is, at that time, one of a number of major participants in another person’s (C) enterprise. At that time, C must be a body corporate or a firm, and two persons, including P, much each hold at least 40% of the rights and powers in C.

Further guidance

Further guidance can be found in INTM412060.