Section 444 | Companies involved with non-close companies

(1)A company is not to be treated as a close company if condition A or B is met.

(2)Condition A is that the company—

(a)is controlled by one or more companies none of which is a close company, and

(b)cannot be treated as a close company except by taking, as one of the 5 or fewer participators requisite for its being so treated, a company which is not a close company.

(3)Condition B is that the company—

(a)would not be a close company were it not for paragraph (a) of section 439(3) or paragraph (d) of section 450(3), and

(b)would not be a close company if the references in those paragraphs to participators did not include loan creditors which are companies other than close companies.

(4)References in subsections (2) and (3) to a close company include a company which, if UK resident, would be a close company.