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HMRC internal manual

Company Taxation Manual

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HM Revenue & Customs
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Close companies: tests: rights and powers of certain other persons

CTA2010/S451 & S1069 (3) (formerly ICTA88/S416 (5) - (6))

In addition to the rights and powers which a participator possesses (or is entitled to acquire), the rights and powers of certain other persons may be attributed to him or her and count as his or her rights, etc, for the purpose of determining who controls the company (see CTM60200 onwards). The rights, etc, so attributed to a participator are as follows.

  • The rights and powers of his or her nominee, that is, any rights or powers which another person possesses on his or her behalf or may be required to exercise on his or her direction or behalf.
  • The rights and powers of his or her associates (including the rights and powers of nominees of associates but not of associates of associates) (see CTM60150).
  • The rights and powers of any companies of which he or she has control or he or she and or her associates (including nominees of associates but not associates of associates) have control.

In applying the above, such attributions are to be made as will result, if possible, in the company being treated as under the control (see CTM60200) of five or fewer participators.