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Market value of shares in private trading companies.
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9.—(1) Where there are included in the taxable wealth of an assessable person on a valuation date shares in a private trading company which is a company controlled by that assessable person on that date, the market value of each such share shall be ascertained by the Commissioners for the purposes of tax as if it formed part of a group of shares sufficient in number to give the owner of the group control of the company.
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(2) (a) In this section a reference to a company controlled by an assessable person is a reference to a company that—
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(i) if the person is an individual, is under the control of any one or more of the following, that is to say, the individual, the relatives of the individual, nominees of the individual or nominees of relatives of the individual,
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(ii) if the person is a discretionary trust, is under the control of any one or more of the following, that is to say, the trustees of the trust, the principal objects of the trust within the meaning of section 5 (4), the relatives of those objects, the nominees of those objects or the nominees of relatives of those objects,
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(iii) if the person is a private non-trading company, is under the control of that private non-trading company or of persons having control of that private non-trading company.
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(b) For the purposes of this section a company which is controlled by any one or more of the individual and relatives of the individual shall be regarded as being itself a relative of the individual.
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(c) (i) In this section—
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“company”, “nominee” and “share” have the meanings respectively assigned to them by section 6;
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“control” means control for the purposes of section 6 and cognate words shall be construed accordingly;
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“private trading company” means a company within the meaning of section 6 which is not a private non-trading company.
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(ii) For the purposes of subparagraph (i) references in this section and in section 6 to a relative shall be construed as references to a person who is the spouse or a minor child of the person in relation to whom the expression is used.
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(3) For the purposes of this section a company shall be deemed to be a company controlled by an assessable person on a valuation date if it is a company controlled by that person on that date or if it was a company so controlled at any time in the period of twelve months prior to that date and, not being so controlled on that date, again becomes so controlled at any time in the period of twelve months subsequent to that date.
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