Taxation (International and Other Provisions) Act 2010 section 259NB

Control groups

Section 259NB defines when two persons are in the same "control group" for the purposes of the hybrid mismatch rules, based on accounting consolidation, participation in management or capital, or a 50% investment relationship.

• Two persons are in the same control group if their financial results are consolidated (or would be consolidated but for an exemption) in group accounts for any period.
• They are also in the same control group on any day where, within a six-month window starting on that day, one participates in the management, control or capital of the other, or a common person participates in both.
• A further route into the same control group exists where one person holds a 50% investment in the other, or a third person holds a 50% investment in each of them.
• "Group accounts" means consolidated accounts prepared under the Companies Act 2006 or any equivalent law of a territory outside the United Kingdom.