Corporation Tax Act 2009 section 837

"Major interest"

Section 837 defines what it means for a person to hold a "major interest" in a company for the purposes of the related party rules governing intangible fixed assets.

• A person has a "major interest" in a company when that person and one other person together have control of the company
• Each of the two persons must hold rights and powers representing at least 40% of the total needed for control
• Control for this purpose means having the power to secure that the company's affairs are conducted in accordance with one's wishes, as defined by the broader control provisions
• Additional rules about which rights and powers are taken into account apply when determining whether a major interest exists