{
  "url": "https://openlegislation.uk/finance-no-2-act-2023/section-242",
  "json_url": "https://openlegislation.uk/finance-no-2-act-2023/section-242.json",
  "legislation": "ukpga/2023/30",
  "legislation_title": "Finance (No. 2) Act 2023",
  "legislation_url": "https://openlegislation.uk/finance-no-2-act-2023",
  "path": "section/242",
  "kind": "section",
  "number": "242",
  "heading": "Ownership interests and controlling interests",
  "text": "(1) In this Part “ownership interest” means a direct ownership interest or an indirect ownership interest.\n(2) An entity or an individual (“A”) has a direct ownership interest in an entity (“B”) if—\n(a) A has an interest (whether by way of shares, other security or otherwise) that gives rise to a share of the profits, capital or reserves of B or of a permanent establishment of B (whether on the making of a distribution of profits, winding up or otherwise), and\n(b) that interest is accounted for as equity in—\n(i) where B is a member of a consolidated group, the consolidated financial statements of the ultimate parent of the group (ignoring any requirement to consolidate the assets, liabilities, income, expenses and cash flows of B in those statements), or\n(ii) otherwise, B’s financial statements.\n(3) An entity or an individual (“C”) has an indirect ownership interest in an entity (“D”) if C has a direct ownership interest in—\n(a) an entity that has a direct ownership interest in D, or\n(b) an entity that has (as a result of the single or repeated application of this subsection) an indirect ownership interest in D.\n(4) An entity (“R”) has a controlling interest in another entity (“S”) if condition A or B is met.\n(5) Condition A is that as a result of an ownership interest R has in S—\n(a) R is required to consolidate the assets, liabilities, income, expenses and cash flows of S on a line-by-line basis in accordance with an acceptable ... accounting standard, or\n(b) R would have been required to do so if R had prepared consolidated financial statements.\n(6) Condition B is that S is a permanent establishment of R.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 242(2)(b) substituted (with effect in accordance with Sch. 8 para. 53(5)-(13) of the amending Act) by Finance Act 2026 (c. 11), Sch. 8 paras. 33, 53(5)-(13)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in s. 242(5)(a) omitted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by virtue of Finance Act 2025 (c. 8), Sch. 4 paras. 68, 72(4)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2023/30/section/242",
    "retrieved_at": "2026-10-29T08:52:11.242356+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}