# Corporation Tax Act 2009, Section 771: Meaning of “effective 51% subsidiary”


(1) For the purposes of this Part a company (“the subsidiary”) is an effective 51% subsidiary of another company (“the parent”) if (and only if) conditions A and B are met.
(2) Condition A is that the parent is beneficially entitled to more than 50% of any profits available for distribution to equity holders of the subsidiary (see section 772).
(3) Condition B is that the parent would be beneficially entitled to more than 50% of any assets of the subsidiary available for distribution to its equity holders on a winding up (see section 772).

---
Source: https://www.legislation.gov.uk/ukpga/2009/4/section/771 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2009/section-771
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.