Taxes Consolidation Act 1997 Schedule 12 paragraph 1

Interpretation

Paragraph 1 of Schedule 12 sets out the key definitions and interpretation rules that apply throughout the Schedule, which governs employee share ownership trusts (ESOTs).

• Defines "ordinary share capital", "relevant company", "securities", "associate", "control" and "material interest" for the purposes of the Schedule.
• A company falls within the founding company's group if it is the founding company itself, or if it is controlled by the founding company and the trust deed extends to it.
• A person has a material interest in a company if, alone or together with associates, the person owns or can control more than 5% of the company's ordinary share capital.
• A trust is regarded as established only when the deed under which it is created is formally executed.