Section 310 — Income Tax Act 2007: Excluded activities: provision of services or facilities for another business

Excluded activities: provision of services or facilities for another business 310 1 Providing services or facilities for a business carried on by another person (other than a company of which the provider of the services or facilities is a qualifying subsidiary) is an excluded activity if—

a the business consists wholly or as to a substantial part of activities falling within any of paragraphs (a) to (ka) of section 303(1),

and b a controlling interest in the business is held by a person who also has a controlling interest in the business carried on by the provider of the services or facilities.

2 Subsections (3) to (5) explain what is meant by a controlling interest in a business for the purposes of subsection (1)(b).

3 In the case of a business carried on by a company, a person (“A”) has a controlling interest in the business if—

a A controls the company, b the company is a close company and A or an associate of A, being a director of the company, either—

i is the beneficial owner of more than 30% of the ordinary share capital of the company, or ii is able, directly or through the medium of other companies or by any other indirect means, to control more than 30% of that share capital, or c at least half the business could, in accordance with section 942 of CTA 2010 (options for purposes of ownership condition) , be regarded as belonging to A for the purposes of section 941 of that Act (trade transfers without change of ownership: ownership condition) .

4 In any other case, a person has a controlling interest in a business if the person is entitled to at least half the assets used for, or of the income arising from, the business.

5 For the purposes of this section—

a any rights or powers of a person who is an associate of another are to be attributed to that other person, and b “ business ” includes any trade, profession or vocation.