F1PART 5BTax relief for social investments
CHAPTER 4Eligibility: conditions relating to the social enterprise
Interpretation of conditions relating to the social enterprise
257MTExcluded activity: providing services or facilities for another business
1
This section explains what is meant by a controlling interest in a business for the purposes of section 257MQ(1)(h).
2
In the case of a business carried on by a company, a person (“A”) has a controlling interest in the business if—
a
A controls the company,
b
the company is a close company and A, or an associate of A, is a director of the company and either—
i
is the beneficial owner of more than 30% of the ordinary share capital of the company, or
ii
is able, directly or through the medium of other companies or by any other indirect means, to control more than 30% of that share capital, or
c
at least half of the business could, in accordance with section 942 of CTA 2010, be regarded as belonging to A for the purposes of section 941 of CTA 2010 (company reconstructions without a change of ownership).
3
In any other case, a person has a controlling interest in a business if the person is entitled to at least half of the assets used for, or of the income arising from, the business.
4
For the purposes of this section—
a
any rights or powers of a person who is an associate of another are to be attributed to that other person, and
b
“business” includes any trade, profession or vocation.
Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1