Section 1218ZCB — Corporation Tax Act 2009: Interpretation of section 1218ZCA(3)(b) and (c)

Interpretation of section 1218ZCA(3)(b) and (c) 1218ZCB 1 For the purposes of section 1218ZCA(3)(b) a company is “wholly owned by a charity which maintains a museum or gallery” if condition A or B is met.

2 Condition A is that—

a the company has an ordinary share capital, and b every part of that share capital is owned by—

i a charity which maintains a museum or gallery, or ii two charities, each of which maintains a museum or gallery.

3 Condition B is that—

a the company is limited by guarantee, b there are no more than two beneficiaries of the company, and c the beneficiary, or each beneficiary, is—

i a charity which maintains a museum or gallery, or ii a company wholly owned by a charity which maintains a museum or gallery.

4 For the purposes of section 1218ZCA(3)(c) a company is “wholly owned by a local authority” if—

a where the company has an ordinary share capital, every part of that share capital is owned by the local authority, or b where the company is limited by guarantee, the local authority is the sole beneficiary of the company.

5 Ordinary share capital of a company is treated as owned by a charity or a local authority if the charity or local authority (as the case may be)—

a directly or indirectly owns that share capital within the meaning of Chapter 3 of Part 24 of CTA 2010 , or b would be taken so to own it if references in that Chapter to a body corporate included references to a charity or local authority which is not a body corporate.

6 A beneficiary of a company is a person who—

a is beneficially entitled to participate in the company’s divisible profits, or b will be beneficially entitled to share in any of the company’s net assets available for distribution on its winding up.

7 In this section “museum or gallery” has the same meaning it has for the purposes of section 1218ZCA.