Section 51F Companies and groups: meaning of “control”
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Amendments
Section 51F inserted by Finance Act 2008 section 74 and Schedule 24 para 3 in relation to expenditure incurred on or after 1 April 2008 (for corporation tax purposes), and 6 April 2008 (for income tax purposes).
(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.
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