Notional interest in assets of related entity
96 Notional interest in assets of related entity
A relevant entity has a notional interest in an asset held beneficially by a private company or a private unit trust scheme if—
the relevant entity holds a significant interest in the private company or private unit trust scheme; or
a chain of significant interests can be traced between the relevant entity and the private company or private unit trust scheme. ExampleEntity A holds a 75% proportionate interest in entity B which in turn holds a 60% proportionate interest in entity C which in turn holds a 40% proportionate interest in entity D. In this case entity A has a notional interest in the assets held beneficially by entity B and entity C but not in the assets held by entity D.
The value of the notional interest is calculated as follows:
Where—V1 is the unencumbered value of the asset
P is a fraction representing the proportionate interest of the relevant entity in the private company or private unit trust scheme.
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