CTM80170 - Groups: group relief: control

ICTA88/S410, ICTA88/S410 (5) and ICTA88/S840

Section 840 does not define 'control' merely in terms of direct shareholdings and voting rights in the company concerned. A person or persons have Section 840 control if they have power to secure that the affairs of the company are conducted in accordance their wishes. So you may have to consider:

• shareholdings and voting rights in any company, and also
• powers conferred by the documents regulating any company if these affect the 'control' situation.

So, to determine whether relevant arrangements exist, you will need to consider:

• the Memorandum and Articles of Association of the company (and any other document regulating the company), and
• the various documents relating to loans made to the company.

Where a company other than the parent company holds shares, etc, you may also need to consider the shareholdings, etc, of that company.