Income Tax (Trading and Other Income) Act 2005 section 608S

Control groups

Section 608S defines what constitutes a "control group" for the purposes of the notice requirement under section 608O, which relates to offshore receipts in respect of intangible property.

• Two persons are in the same control group if they are consolidated for accounting purposes, one holds a 51% investment in the other, or a third person holds a 51% investment in both
• Entities are "consolidated for accounting purposes" if their financial results must be, would need to be (ignoring any exemption), or are in fact included in group accounts
• "Group accounts" means accounts prepared under section 399 of the Companies Act 2006 or equivalent provisions under the law of a jurisdiction outside the United Kingdom
• The meaning of a "51% investment" is defined separately in section 608U of the same Act