Section 296 — Income Tax Act 2007: The control and independence requirement

The control and independence requirement 296 1 The control element of the requirement is that—

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

2 The independence element of the requirement is that—

a the relevant company must not be under the control of another company (or of another company and any other person connected with that other company),

and b no arrangements must be in existence by virtue of which the relevant company could fail to meet paragraph (a).

3 This section is subject to section 327(7) (exchange of shares).