(1)Providing services or facilities for a business carried on by another person (other than a company of which the provider of the services or facilities is a qualifying subsidiary) is an excluded activity if—
(a)the business consists wholly or as to a substantial part of activities falling within any of paragraphs (a) to [F1(ka)] of section 192(1), and
(b)a controlling interest in the business is held by a person who also has a controlling interest in the business carried on by the provider of the services or facilities.
(2)Subsections (3) to (5) explain what is meant by a controlling interest in a business for the purposes of subsection (1)(b).
(3)In the case of a business carried on by a company, a person (“A”) has a controlling interest in the business if—
(a)A controls the company,
(b)the company is a close company and A or an associate of A is a director of the company and is either—
(i)the beneficial owner of more than 30% of the ordinary share capital of the company, or
(ii)able, directly or through the medium of other companies or by any other indirect means, to control more than 30% of that share capital, or
(c)at least half the business could, in accordance with [F2section 942 of CTA 2010], be regarded as belonging to A for the purposes of [F3section 941 of that Act].
(4)In any other case, a person has a controlling interest in a business if the person is entitled to at least half the assets used for, or of the income arising from, the business.
(5)For the purposes of this section—
(a)any rights or powers of a person who is an associate of another are to be attributed to that other person, and
(b)“business” includes any trade, profession or vocation.
Textual Amendments
F1Word in s. 199(1)(a) substituted (17.7.2012) (with effect in accordance with Sch. 7 para. 24 of the amending Act) by Finance Act 2012 (c. 14), Sch. 7 para. 15
F2Words in s. 199(3)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 501(a) (with Sch. 2)
F3Words in s. 199(3)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 501(b) (with Sch. 2)
Modifications etc. (not altering text)
C1S. 199 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 2 para. 49 (with Sch. 2)