Section 450 — Corporation Tax Act 2010: “Control”

“Control” 450 1 This section applies for the purpose of this Part.

2 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.

3 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.

4 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).