½Û×ÓÊÓƵ

In the absence of special provisions, a group which holds one or more joint venture investments, where ownership is less than 51%, might find that what would otherwise be a trading group for SSE purposes is tainted by the holdings of the investment or investments. To prevent this, there are provisions allowing for look through of certain joint venture investments, treating the investing group and the joint venture company as if they were one. Thus, a minority shareholding which would otherwise be treated as an investment may help towards establishing trading status for the company making the investment.

The rules apply where a company has a qualifying shareholding in a joint venture company. These terms are defined in the legislation¹.

HMRC has confirmed its opinion that where a group has an interest in a company that does not fall within the definition of a joint venture company, then whether that represents part of the group's overall trading activities or constitutes a separate investment activity will be a question of fact and depend on the circumstances