Corporation Tax Act 2009 section 472

Meaning of "control"

Section 472 defines what "control" means in relation to a company for the purposes of certain provisions within Part 6 of the Corporation Tax Act 2009, and explains how that definition interacts with trading shares and partnership arrangements.

• "Control" of a company means the power to direct its affairs through shareholdings, voting power, or rights conferred by the company's articles of association or other governing documents
• Trading shares — those where a sale profit would be a trading receipt and which are not long-term insurance business assets — are excluded from the control test, along with any voting power arising from them
• Where a firm falls within the partnership calculation rules, any property, rights or powers held for the firm's purposes are treated as apportioned between the partners in their profit-sharing ratios
• The general partner of a limited partnership that is a collective investment scheme is excluded from the partnership apportionment rule