Income Tax (Earnings and Pensions) Act 2003 section 467

Meaning of "dependent subsidiary"

Section 467 defines what constitutes a "dependent subsidiary" for the purposes of the share scheme provisions, setting out the conditions a company must meet to qualify as a dependent subsidiary of another company.

• A dependent subsidiary must satisfy several conditions relating to its relationship with a parent company, including ownership and control requirements.
• The conditions are set out in four separate subsections, each addressing a different aspect of the subsidiary relationship.
• The directors of the subsidiary are required to provide a certificate to HMRC (rather than to an individual tax inspector) confirming the company's status as a dependent subsidiary.
• The definition of "period of account" used in this section aligns with the standard company definition, referring to the period for which a company draws up its accounts.