Corporation Tax Act 2010 section 707

Meaning of "control"

Section 707 defines what "control" of a company means for the purposes of the chapter dealing with recovery of unpaid corporation tax following a change in company ownership.

• A person has control of a company if they exercise, are able to exercise, or are entitled to acquire direct or indirect control over the company's affairs.
• Control is also established where a person holds or is entitled to acquire 50% of the share capital or voting power, or the right to receive the greater part of income distributions or assets on a winding up.
• When assessing whether a person would receive the greater part of distributed income, any rights held as a loan creditor are disregarded.
• Where two or more persons acting together satisfy any of the control tests, each of them is individually treated as having control of the company.