SCHEDULES

SCHEDULE 18Serial tax avoidance

PART 6Corporate groups, associated persons and partnerships

Meaning of “associated”

48

1

For the purposes of paragraph 47 two persons are associated with one another if—

a

one of them is a body corporate which is controlled by the other, or

b

they are bodies corporate under common control.

2

Two bodies corporate are under common control if both are controlled—

a

by one person,

b

by two or more, but fewer than six, individuals, or

c

by any number of individuals carrying on business in partnership.

3

For the purposes of this section a body corporate (“H”) is taken to control another body corporate (“B”) if—

a

H is empowered by statute to control B's activities, or

b

H is B's holding company within the meaning of section 1159 of and Schedule 6 to the Companies Act 2006.

4

For the purposes of this section an individual or individuals are taken to control a body corporate (“B”) if the individual or individuals, were they a body corporate, would be B's holding company within the meaning of those provisions.