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HMRC internal manual

Capital Allowances Manual

HM Revenue & Customs
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General: Definitions: Control


A person controls a body corporate if that person can use the following to ensure that the body corporate conducts its affairs in accordance with their wishes:

  • shares in the body corporate or any other body corporate;
  • voting power in the body corporate or any other body corporate;
  • powers given to the person by the articles of association of that or any other body corporate.


Example The issued share capital of Desperado Productions Ltd is one million ordinary shares. If Henley owns 550,000 of those shares he controls the company.

If Desperado Productions Ltd owns the entire issued share capital of Bitter Creek Ltd, Henley also controls Bitter Creek Ltd.

Control of a partnership is the right to more than one half of the assets or more than one half of the income of the partnership.

Example Mark and John are in partnership. This is how they share the profits. Mark gets 75% and John gets 25%. This means that Mark controls the partnership.

When a company is in liquidation it is the liquidator, not the company or its members, who has control of the assets of the company.

In the legislation about the meaning of connected person CA11630.this definition only applies where it is expressly indicated to apply.