Commentary

D8.320 Qualifying issuing companies—qualifying subsidiaries requirement

Corporate tax
Corporate tax | Commentary

D8.320 Qualifying issuing companies—qualifying subsidiaries requirement

Corporate tax | Commentary

D8.320 Qualifying issuing companies—qualifying subsidiaries requirement

Control

Throughout the qualification period, an issuing company is disqualified if it has subsidiaries that are not qualifying subsidiaries1. A subsidiary here is widely defined to cover any company controlled by the issuing company either alone or together with any person connected with it2. Control in this context is determined by reference to the wide definition that applies under the close company provisions3. As a result, an issuing company (either alone or with a connected person) controls another company if it exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the company's affairs. In particular, the issuing company has control if it possesses, or is entitled to acquire:

  1.  

    (a)     more than 50% of the share capital or issued share capital of the other company

  2.  

    (b)     more than 50% of the voting power in the other company

  3.  

    (c)     such part of the issued share capital of

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