Section 574 Meaning of “control”

United Kingdom

(1)

In this Act “ control ” is used in the sense given in this section F1(but, for the purposes of section 575, this definition applies only where expressly indicated).

(2)

In relation to a body corporate (“ company A ”), “ control ” means the power of a person (“ P ”) to secure—

(a)

by means of the holding of shares or the possession of voting power in relation to that or any other body corporate, or

(b)

as a result of any powers conferred by the articles of association or other document regulating that or any other body corporate,

that the affairs of company A are conducted in accordance with P’s wishes.

(3)

In relation to a partnership, “ control ” means the right to a share of more than half of the assets, or of more than one half of the income, of the partnership.

Annotations

Textual amendments

F1: Words in s. 574(1) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 410 (with Sch. 2)