Corporation Tax Act 2009 section 1218ZCB

Interpretation of section 1218ZCA(3)(b) and (c)

Section 1218ZCB defines what it means for a company to be "wholly owned by a charity which maintains a museum or gallery" or "wholly owned by a local authority" for the purposes of qualifying for museums and galleries exhibition tax relief.

• A company with ordinary share capital is wholly owned by a charity if all its shares are held by one or two charities that each maintain a museum or gallery; alternatively, a company limited by guarantee qualifies if it has no more than two beneficiaries, each being such a charity or a company wholly owned by such a charity.
• A company is wholly owned by a local authority if the local authority holds all the ordinary share capital, or, where the company is limited by guarantee, the local authority is the sole beneficiary.
• Share ownership includes both direct and indirect ownership, and applies even where the charity or local authority is not itself a body corporate.
• A "beneficiary" of a company means a person entitled to share in its divisible profits or in its net assets on winding up.