9(1)The independence requirement consists of two conditions.U.K.
(2)The first condition is that the company is not—
(a)a 51% subsidiary of another company, or
(b)a company which is under the control of—
(i)another company, or
(ii)another company and any other person connected with that other company,
without being a 51% subsidiary of that other company.
(3)The second condition is that no arrangements are in existence by virtue of which the company could become such a subsidiary or fall under such control.
(4)Arrangements with a view to a qualifying exchange of shares (see paragraph 40) do not count for the purposes of the second condition.
[F1(5)But the independence requirement is treated as met if the company is subject to an employee-ownership trust (within the meaning of paragraph 27(4) to (6) of Schedule 2).]
Textual Amendments
F1Sch. 5 para. 9(5) inserted (1.10.2014) by Finance Act 2014 (c. 26), Sch. 37 para. 22(1)(2); S.I. 2014/2461, art. 2