VCM62336 - VCT scheme: qualifying holdings: meaning of 'connected'

ITA/S1021 & S993 In ascertaining, for the purpose of applying the 'control' rule, whether a person is connected with a company ITA/S993 should be applied. Guidance on this provision is given at CG14580 onwards, which deals with similarly worded legislation. In applying Section 993, which makes extensive use of the concept of control, the modification of ICTA88/S416 referred to at VCM62332 should be made.

Most of the circumstances in which Section 993 provides for persons to be treated as connected with each other are predictable. The exception is that covered in Section 993 (7), which provides that persons are to be regarded as connected in relation to a company if they act together to secure or exercise control of that company. The provision extends to persons acting on the direction of any of those persons. Guidance can be found at CG14622.