Corporation Tax Act 2010 section 200

Company wholly owned by a charity

Section 200 defines when a company is considered to be wholly owned by a charity, setting out two alternative conditions and explaining how share ownership and beneficiary status are determined.

• A company with ordinary share capital is wholly owned by a charity if every part of that share capital is owned by a charity or charities (Condition A)
• A company limited by guarantee is wholly owned by a charity if every beneficiary is, or must be, a charity or a company itself wholly owned by a charity (Condition B)
• Share ownership by a charity includes both direct and indirect ownership, and extends to charities that are not bodies corporate; for registered clubs acting as charities, beneficial ownership of the shares is sufficient
• A beneficiary of a company means a person entitled to share in the company's divisible profits or in its net assets available for distribution on winding up