Section 185 — Income Tax Act 2007: The control and independence requirement

The control and independence requirement 185 1 The control element of the requirement is that—

a the issuing company must not at any time in period B control (whether on its own or together with any person connected with it) any company which is not a qualifying subsidiary of the issuing company, and b no arrangements must be in existence at any time in that period by virtue of which the issuing company could fail to meet paragraph (a) (whether during that period or otherwise).

2 The independence element of the requirement is that—

a the issuing company must not at any time in period B—

i be a 51% subsidiary of another company, or ii be under the control of another company (or of another company and any other person connected with that other company), without being a 51% subsidiary of that other company, and b no arrangements must be in existence at any time in that period by virtue of which the issuing company could fail to meet paragraph (a) (whether during that period or otherwise).

3 This section is subject to section 247(4) (exchange of shares).