Last amended: 20 March 2012
Individual has an interest in a controlled private company or trust
Situations where an individual is considered to have an interest in a controlled private company or controlled private trust include where they are:
- an attributable stakeholder (for example director of a private company, appointor or trustee of a private trust), or
- a non-attributable stakeholder (for example minority shareholder of a private company or beneficiary of a private trust).
Homeownership and a sole attributable stakeholder
If the principal home of a sole attributable stakeholder or members of a couple who are the only attributable stakeholders is part of the entity assets which they control, then the value of their home (and curtilage) is an exempt asset (provided the individuals can demonstrate that they have reasonable security of tenure in the home).
Homeownership and multiple attributable stakeholders
If the entity assets include the principal homes of multiple attributable stakeholders then the value of the principal home (and curtilage) of each stakeholder is an exempt asset for that stakeholder only(provided the individuals can demonstrate that they have reasonable security of tenure in the home). The formula for calculating the asset attribution amount of an individual (where there are no liabilities against the home) is as follows:
(total entity assets less the value of principal home) x asset attribution percentage
However, where liabilities are involved, the value of liabilities secured against the assets and associated allowable income deductions for interest payable are reduced in line with the exemption given for the principal home.
Shared equity housing
Some organisations provide accommodation through a company structure for particular groups, such as the elderly or people with a disability, on a shared equity basis. The homeowner status of individuals living in shared equity housing is assessed using the provisions for special residences. The amount paid for shares in the company operating the housing is regarded as being the person's entry contribution amount.