Section 200 — Corporation Tax Act 2010: Company wholly owned by a charity

Company wholly owned by a charity 200 1 For the purposes of this Chapter a company is wholly owned by a charity 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 a charity (whether or not the same charity).

3 Condition B is that—

a the company is limited by guarantee, and b every beneficiary of the company is or must be a charity or a company wholly owned by a charity.

4 Ordinary share capital of a company is treated as owned by a charity if a charity—

a directly or indirectly owns that share capital within the meaning of Chapter 3 of Part 24, or b would be taken so to own it if references in that Chapter to a body corporate included references to a charity which is not a body corporate. 4A In the case of a charity which is a registered club, ordinary share capital of a company is treated as owned by a charity if the charity beneficially owns that share capital.

5 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.