Section 1218ZCB | Interpretation of section 1218ZCA(3)(b) and (c) ^F1

(1)For the purposes of section 1218ZCA(3)(b) a company is “wholly owned by a charity which maintains a museum or gallery” if condition A or B is met.

(2)Condition A is that—

(a)the company has an ordinary share capital, and

(b)every part of that share capital is owned by—

(i)a charity which maintains a museum or gallery, or

(ii)two charities, each of which maintains a museum or gallery.

(3)Condition B is that—

(a)the company is limited by guarantee,

(b)there are no more than two beneficiaries of the company, and

(c)the beneficiary, or each beneficiary, is—

(i)a charity which maintains a museum or gallery, or

(ii)a company wholly owned by a charity which maintains a museum or gallery.

(4)For the purposes of section 1218ZCA(3)(c) a company is “wholly owned by a local authority” if—

(a)where the company has an ordinary share capital, every part of that share capital is owned by the local authority, or

(b)where the company is limited by guarantee, the local authority is the sole beneficiary of the company.

(5)Ordinary share capital of a company is treated as owned by a charity or a local authority if the charity or local authority (as the case may be)—

(a)directly or indirectly owns that share capital within the meaning of Chapter 3 of Part 24 of CTA 2010, or

(b)would be taken so to own it if references in that Chapter to a body corporate included references to a charity or local authority which is not a body corporate.

(6)A beneficiary of a company is a person who—

(a)is beneficially entitled to participate in the company’s divisible profits, or

(b)will be beneficially entitled to share in any of the company’s net assets available for distribution on its winding up.

(7)In this section “museum or gallery” has the same meaning it has for the purposes of section 1218ZCA.