The control and independence requirementU.K.
42(1)In relation to shares issued before 6 April 2007, section 139(1)(a) applies with the omission of “of the company”.U.K.
(2)In relation to shares issued before 21 March 2000, section 139 applies with the following modifications—
(a)the substitution for subsections (1) to (3) of—
“(1)The control element of the requirement is that—
(a)the company must not control (or together with any person connected with it control) another company or have a 51% subsidiary, and
(b)no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a).
(2)The independence element of the requirement is that—
(a)the company must not be under the control of another company (or another company and any other person connected with that company) or be a 51% subsidiary of another company, and
(b)no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a).
(3)This section is subject to section 145(3); and nothing in subsection (1) prevents the company having one or more qualifying subsidiaries.”, and
(b)in subsection (4) the omission of the definition of “arrangements” and, in the definition of “control”, the omission of “in subsection (1)(a)”.
(3)In the application of sub-paragraph (2) on or after 21 March 2000, shares—
(a)that were issued on or after 6 April 1998 but before 21 March 2000, and
(b)to which EIS relief or relief under Schedule 5B to TCGA 1992 was attributable immediately before 21 March 2000,
are treated as having been issued on or after 21 March 2000.
(4)Section 139 does not apply in relation to shares issued before 6 April 1998.
F1(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Sch. 2 para. 42(5)(6) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)