# Finance Act 2000, Paragraph 26

Extent: E+W+S+N.I.

(1) Providing services or facilities for a business carried on by another person is an excluded activity if—
(a) the business consists to a substantial extent in excluded activities within paragraph 19(1), and
(b) a controlling interest in the business is held by a person (other than a company of which the company providing the services or facilities is a subsidiary) who also has a controlling interest in the business carried on by the company providing the services or facilities.
(2) Sub-paragraphs (3) to (5) define what is meant by a controlling interest in a business for the purposes of sub-paragraph (1)(b).
(3) In the case of a business carried on by a company, a person has a controlling interest if—
(a) he controls the company,
(b) the company is a close company and he or an associate of his, being a director of the company, either—
(i) is the beneficial owner of more than 30% of the ordinary share capital of the company, or
(ii) is able, directly or through the medium of other companies or by any other indirect means, to control more than 30% of that share capital,
or
(c) not less than half of the business could, in accordance with section 344(2) of the Taxes Act 1988, be regarded as belonging to him for the purposes of section 343 of that Act.
(4) In any other case, a person has a controlling interest in a business if he is entitled to not less than half of the assets used for, or of the income arising from, the business.
(5) For the purposes of sub-paragraph (3)(a) the question whether a person controls a company shall be determined in accordance with section 416(2) to (6) of the Taxes Act 1988.
(6) For the purposes of this paragraph there shall be attributed to any person any rights or powers of any other person who is an associate of his.
(7) In this paragraph—
“associate” has the meaning given in section 417(3) and (4) of the Taxes Act 1988, except that in those subsections as they apply for the purposes of this paragraph “relative” does not include a brother or sister;
“business” includes any trade, profession or vocation; and
“director” shall be construed in accordance with section 417(5) of the Taxes Act 1988.

---
Source: https://www.legislation.gov.uk/ukpga/2000/17/schedule/14/paragraph/26 (the official version)
Page: https://openlegislation.uk/finance-act-2000/schedule-14/paragraph-26
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.