C6Part 10Close companies
C5C4Chapter 2Basic definitions
Pt. 10 Ch. 2 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 376(1) (as amended by 2010 c. 4, s. 1184(1), Sch. 1 para. 610(2) (with Sch. 2))
Pt. 10 Ch. 2 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 456(7) (as substituted by 2010 c. 4, s. 1184(1), Sch. 1 para. 466(2) (with Sch. 2))
Meaning of other expressions in this Part
C1C5C3C4C2450C5C4“Control”
C71
This section applies for the purpose of this Part.
C72
A person (“P”) is treated as having control of a company (“C”) if P—
a
exercises,
b
is able to exercise, or
c
is entitled to acquire,
direct or indirect control over C's affairs.
C73
In particular, P is treated as having control of C if P possesses or is entitled to acquire—
a
the greater part of the share capital or issued share capital of C,
b
the greater part of the voting power in C,
c
so much of the issued share capital of C as would, on the assumption that the whole of the income of C were distributed among the participators, entitle P to receive the greater part of the amount so distributed, or
d
such rights as would entitle P, in the event of the winding up of C or in any other circumstances, to receive the greater part of the assets of C which would then be available for distribution among the participators.
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Any rights that P or any other person has as a loan creditor are to be disregarded for the purposes of the assumption in subsection (3)(c).
5
If two or more persons together satisfy any of the conditions in subsections (2) and (3), they are treated as having control of C.
6
See also section 451 (section 450: rights to be attributed etc).
Pt. 10 applied (with modifications) (6.4.2014) by National Insurance Contributions Act 2014 (c. 7), s. 8, Sch. 1 Pt. 1