[259NBControl groupsU.K.
This section has no associated Explanatory Notes
(1)A person (“A”) is in the same control group as another person (“B”)—
(a)throughout any period for which they are consolidated for accounting purposes,
(b)on any day on which the participation condition is met in relation to them, or
(c)on any day on which the 50% investment condition is met in relation to them.
(2)A and B are consolidated for accounting purposes for a period if—
(a)their financial results for the period are required to be comprised in group accounts,
(b)their financial results for the period would be required to be comprised in group accounts but for the application of an exemption, or
(c)their financial results for the period are in fact comprised in group accounts.
(3)In subsection (2), “group accounts” means accounts prepared under—
(a)section 399 of the Companies Act 2006, or
(b)any corresponding provision of the law of a territory outside the United Kingdom.
(4)The participation condition is met in relation to A and B (“the relevant parties”) on a day if, within the period of 6 months beginning with the day—
(a)one of the relevant parties directly or indirectly participates in the management, control or capital of the other, or
(b)the same person or persons directly or indirectly participate in the management, control or capital of each of the relevant parties.
(5)For the interpretation of subsection (4), see sections 157(1), 158(4), 159(1) and 160(1) (which have the effect that references in subsection (4) to direct or indirect participation are to be read in accordance with provisions of Chapter 2 of Part 4).
(6)The 50% investment condition is met in relation to A and B if—
(a)A has a 50% investment in B, or
(b)a third person has a 50% investment in each of A and B.
(7)Section 259ND applies for the purposes of determining whether a person has a “50% investment” in another person.]