Part 6 Exempt income

Chapter 9 Other income

Interest and royalty payments

761 Meaning of “25% associates”

For the purposes of condition C in section 758, two companies are 25% associates if—

(a) one holds directly—

(i) 25% or more of the capital in the other, or

(ii) 25% or more of the voting rights in the other, or

(b) a third company holds directly—

(i) 25% or more of the capital in each of them, or

(ii) 25% or more of the voting rights in each of them.