Taxes Consolidation Act 1997 section 432

Meaning of "associated company" and "control"

Section 432 defines "associated company" and "control" for the purposes of Part 13 (the close company rules).

• Two companies are associated if one controls the other, or both are under common control, either at the relevant time or at any point in the preceding year.
• A person controls a company if they exercise, or can exercise, direct or indirect control over its affairs — specifically by holding the majority of voting power, share capital, income entitlement, or asset entitlement on a winding up.
• Two or more persons who together satisfy any of the control conditions are treated as jointly controlling the company; future entitlements to shares or rights are treated as present holdings.
• Rights held by nominees are attributed to their principal; rights held by associates and controlled companies may also be attributed to a person, with attribution applied so as to bring the company within the control of five or fewer participators wherever possible.

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