Section 51F — Finance Act 2008: Companies and groups: meaning of “control”

Companies and groups: meaning of “control” 51F 1 A company is controlled by a person in a financial year if it is controlled by that person at the end of its chargeable period ending in that financial year.

2 A group of companies is controlled by a person in a financial year if the company which is the parent undertaking is controlled by that person at the end of its chargeable period ending in that financial year.

3 Section 574(2) defines “ control ” in relation to a company which is a body corporate.

4 In relation to a company (“C”) which is not a body corporate, control means the power of a person (“P”) to secure—

a by means of the holding of shares or the possession of voting power in relation to C or another body, or b as a result of any powers conferred by the constitution of C or another body, that the affairs of C are conducted in accordance with P's wishes.

5 In subsection (4) “ shares ” has the meaning given by section 1161(2) of the Companies Act 2006.