8(1)The investing company must not, at any time during the qualification period relating to those shares, control the issuing company.U.K.
(2)For this purpose the question whether the investing company controls the issuing company shall be determined in accordance with [F1sections 450 and 451 of CTA 2010] with the following modifications.
(3)The first modification is that, in determining whether the investing company controls the issuing company, there shall be disregarded—
(a)its or any other person’s possession of, or entitlement to acquire, relevant preference shares of the issuing company; and
(b)its or any other person’s possession of, or entitlement to acquire, rights as a loan creditor of the issuing company.
(4)For the purposes of sub-paragraph (3) a person is a “loan creditor” of a company if the person is a creditor in respect of the loan capital of that company (within the meaning of paragraph 7(3)).
(5)The second modification is that in determining whether the conditions of [F2sections 450(2) to (4) of CTA 2010] are satisfied there shall be attributed to the investing company (to the extent that it would not otherwise be the case) any rights or powers in the issuing company, or any of its subsidiaries, that are held by—
(a)any person connected with the investing company; or
(b)any person who is—
(i)a director of the investing company, or of any company connected with that company, or
(ii)a relative of such a director.
For this purpose “relative” means [F3spouse or civil partner], parent or remoter forebear or child or remoter issue.
Textual Amendments
F1Words in Sch. 15 para. 8(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 315(2)(a) (with Sch. 2)
F2Words in Sch. 15 para. 8(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 315(2)(b) (with Sch. 2)
F3Words in Sch. 15 para. 8(5)(b)(ii) substituted (5.12.2005) by Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 132