Corporation Tax Act 2010 section 450

"Control"

Section 450 defines what "control" of a company means for the purposes of the close companies rules in Part 10 of the Corporation Tax Act 2010.

• A person has control of a company if they exercise, are able to exercise, or are entitled to acquire direct or indirect control over that company's affairs.
• Specific tests for control include possessing or being entitled to acquire more than half of the share capital, voting power, entitlement to distributed income, or entitlement to assets on a winding up.
• Rights held as a loan creditor are ignored when assessing whether a person would receive the greater part of the company's income if it were all distributed.
• Two or more persons acting together can be treated as having control if they collectively satisfy any of the control tests.

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