A company may at any relevant time satisfy the tests in (a), (c)
and (d) of
CTM81240. But there may be in existence
arrangements (see
CTM81270 to CTM81280) under which some
person or persons have, or could obtain, control of that subsidiary
but not of its parent. If there are such arrangements in existence,
then the company is not a subsidiary for the purposes of
ICTA88/S240. 'Control' for this purpose is defined as in
ICTA88/S840.
An example of the existence of such arrangements is where the
majority of the voting rights in the subsidiary company are held by
a person or persons other than the parent company. Another example
is where a person or persons, other than the parent company, hold
loan stock which is convertible into shares that will carry the
majority of the voting rights.
However ICTA88/S840 does not merely define 'control' in terms
of voting rights, or in terms of direct holdings. So, to determine
whether such arrangements exist, it is necessary to consider:
and
and
Where a company other than the parent company holds the shares
etc, it may also be necessary to consider the shareholders etc of
that other company.
There is guidance at
CTM80205 on SP3/93 and ESCC10. You have
to follow these when you determine whether 'arrangements' are in
existence.
