PART XIII MISCELLANEOUS SPECIAL PROVISIONS
Chapter 5AShare loss relief
F1Qualifying trading companies: the requirements
F2576DThe control and independence requirement
(1)
The control element of the requirement is that—
(a)
the company must not control (whether on its own or together with any person connected with it) any company which is not a qualifying subsidiary of the company, and
(b)
no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a) (whether at a time during the continuous period that is relevant for the purposes of section 576A(3) or otherwise).
(2)
The independence element of the requirement is that—
(a)
the company must not—
(i)
be a 51% subsidiary of another company, or
(ii)
be under the control of another company (or of another company and any other person connected with that other company), without being a 51% subsidiary of that other company, and
(b)
no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a) (whether at a time during the continuous period that is relevant for the purposes of section 576A(3) or otherwise).
(3)
This section is subject to section 576J(3).
F3(3A)
Section 839 (connected persons) applies for the purposes of this section.
(4)
In this section—
“arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable,
“control” is to be read as follows—
(a)
in subsection (1)(a), in accordance with section 416(2) to (6),
(b)
in subsection (2)(a), in accordance with section 840,
“qualifying subsidiary” is to be read in accordance with section 191 of ITA 2007.