Corporation Tax Act 2010 section 1010

Meaning of "qualifying index" in section 1009

Section 1010 defines what constitutes a "qualifying index" for the purposes of the rules on securities that reflect dividends on certain shares, and also defines when a company is an "associated company" and what "control" means in that context.

• A company is an "associated company" of another if one controls the other, or both are controlled by the same person or persons.
• Control means having the power to direct a company's affairs, whether through shareholdings, voting power, or powers granted by constitutional or regulatory documents.
• Shares held by a company in a trading capacity are disregarded when determining control, provided they are not assets of an insurance company's long-term insurance fund.
• A qualifying index must include shares of at least one company that is not the issuing company or one of its associated companies, and those shares must represent a significant proportion of the index's market value.