Part 13Tax avoidance

Chapter 1Transactions in securities

Circumstances in which income tax advantages obtained or obtainable

691Meaning of “relevant company” in sections 689 and 690

(1)

A company is a relevant company for the purposes of sections 689 and 690 if it is—

(a)

a company under the control of not more than 5 persons (but see subsection (2)), or

(b)

any other company none of whose shares or stocks is—

F1(i)

included in the official UK list, and

F1(ii)

dealt in on a recognised stock exchange in the United Kingdom regularly or from time to time.

(2)

A company is not a relevant company for those purposes if it is under the control of one or more companies which are not relevant companies for those purposes.

(3)

The reference in subsection (1)(b) to shares or stocks does not include debenture stock, preferred shares or preferred stock.

(4)

In this section “control” has the meaning given by section 416(2) to (6) of ICTA (close companies: meaning of “associated company” and “control”).