VCM25160 - EIS: income tax relief: connection with the company: control of the company

ICTA/S291B (4) & (6); ITA/S170 (6) & (7)

An individual is connected with a company if he or she, whether alone or together with an associate (see VCM25200 onwards), has 'control' of the company, or of any subsidiary of the company, within the meaning given in ITA/S995. Note that this definition is not merely in terms of direct shareholdings and voting rights in the company concerned; shareholdings and voting rights in any company, and powers conferred by the documents regulating any company, can be taken into account.

The reference above to a subsidiary is to any company which is at any time in the three year straddling period (ICTA)/Period A (ITA) –(see VCM20600) a subsidiary of the company issuing the shares.

There is one exception to this rule, see VCM25130.