Skip to content
Solved
SearchBrowse
Sign in

Contents

Legislation
Corporation Tax Act 2010

Crossheading Qualifying trading companies: the requirements

  • Section 78 Qualifying trading companies
  • Section 79 The trading requirement
  • Section 80 Ceasing to meet trading requirement because of administration etc
  • Section 81 The control and independence requirement
  • Section 82 The qualifying subsidiaries requirement
  • Section 83 The property managing subsidiaries requirement
  • Section 84 The gross assets requirement
  • Section 85 The unquoted status requirement
  • Section 86 Power to amend requirements by Treasury order
  1. Qualifying trading companies: the requirements
  2. The control and independence requirement

Section 81 | The control and independence requirement

From legislation.gov.uk

(1)The control element of the requirement is that—

(a)the company must not control (whether on its own or together with any person connected with it) any company which is not a qualifying subsidiary of the company, and

(b)no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a) (whether at a time during the continuous period that is relevant for the purposes of section 78(3) or otherwise).

(2)The independence element of the requirement is that—

(a)the company must not—

(i)be a 51% subsidiary of another company, or

(ii)be under the control of another company (or of another company and any other person connected with that other company), without being a 51% subsidiary of that other company, and

(b)no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a) (whether at a time during the continuous period that is relevant for the purposes of section 78(3) or otherwise).

(3)This section is subject to section 87(3).

(4)In this section—

“arrangements” includes any scheme, agreement or understanding (whether or not legally enforceable),

“control”, in subsection (1)(a), is to be read in accordance with sections 450 and 451 (but see section 1124 for the meaning of “control” in subsection (2)(a)(ii)), and

“qualifying subsidiary” is to be read in accordance with section 191 of ITA 2007.

PreviousNext
PrivacyTerms