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—

F1i

included in the official UK list, and

F1ii

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”).