Corporation Tax Act 2010 section 739

Meaning of "relevant company" in sections 737 and 738

Section 739 defines what constitutes a "relevant company" for the purposes of sections 737 and 738, which deal with certain transactions in securities involving distributions and receipt of company assets.

• A company is a "relevant company" if it is controlled by no more than five persons, or if none of its shares or stocks are listed on the official UK list and dealt in on a recognised UK stock exchange.
• A company is not a "relevant company" if it is controlled by one or more companies that are themselves not relevant companies, even if it would otherwise meet the criteria.
• References to shares or stocks for this purpose specifically exclude debenture stock, preferred shares and preferred stock.
• The definition of "control" used here follows the meaning given in section 450, which is the same definition used for the close companies rules in Part 10 of the Act.