Intangible assets: related party rules: interest held jointly
CTA09/PART8/S839 - 840
For the purposes described in CIRD45180 interests held jointly are treated as follows:
The general rule is that the rights and powers of a person (including those which that person is, or will become, entitled to acquire) include rights held jointly with others.
Exception for partnerships
But in the case of partnership the rights and powers of a member are disregarded unless the member has control or a major interest in the partnership. To determine whether that is the case the provisions of Part 8 used to determine whether a person has control of, or a major interest in, a company are applied as if the partnership was a company.
Consequences in practice
This exception will be of particular relevance to situations involving companies (usually not themselves close), which are members of a partnership with a stake in a non-close company. It ensures for example that a company with a small minority stake in a partnership is not regarded as controlling any non-close company that the partnership controls by virtue of the general rule on joint interests.
It is of no relevance to situations where a partnership has a controlling stake in a close company. In that situation all the partners are related parties of the company by virtue of being participators in the close company (S835 (5)). See CIRD45250.