The ownership condition is set out in FA 2022, Sch 2, Pt 1, para 3. It limits the proportion of 'relevant interests' that non-'Category A investors' can have in the company or in any 'enhanced class' of the company's profits or assets to 30%. A QAHC must take reasonable steps to monitor that the ownership condition continues to be met1. See IFM40250 for HMRC guidance on this.
What constitutes a 'relevant interest' is set out at 'Relevant interests' below.
Category A investors are 'good' investors, and include a range of institutional investors (such as most pension funds (both UK and overseas), charities and authorised long-term insurance businesses). 'Qualifying funds' are also Category A investors. This definition is discussed in more detail at 'Relevant interests' below.
An enhanced class of profits or assets is a particular class of profits or assets where a company has issued securities which entitle their holders to a greater proportion of such profits or assets than to other profits or assets of the company. Securities for this purpose means ordinary
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