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Paragraph 9

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The independence requirement consists of two conditions.

(2)

The first condition is that the company is not—

(a)

a 51% subsidiary of another company, or

(b)

a company which is under the control of—

(i)

another company, or

(ii)

another company and any other person connected with that other company,

without being a 51% subsidiary of that other company.

(3)

The second condition is that no arrangements are in existence by virtue of which the company could become such a subsidiary or fall under such control.

(4)

Arrangements with a view to a qualifying exchange of shares (see paragraph 40) do not count for the purposes of the second condition.

F1(5)

But the independence requirement is treated as met if the company is subject to an employee-ownership trust (within the meaning of paragraph 27(4) to (6) of Schedule 2).

Annotations

Textual amendments

F1

Sch. 5 para. 9(5) inserted (1.10.2014) by Finance Act 2014 (c. 26), Sch. 37 para. 22(1)(2); S.I. 2014/2461, art. 2

Notes on Schedule 5

Modifications

C1

Sch. 5 modified (18.3.2026) by Finance Act 2026 (c. 11), s. 16

C2

Sch. 5 modified (6.4.2026) by Finance Act 2026 (c. 11), s. 13(10)