CTM60270 - Close companies: tests: control - by the Crown

CTA2010/S443 (formerly ICTA88/S414 (1) & (4))

A company is to be treated as controlled by or on behalf of the Crown (and therefore not a close company) if, and only if, it is by any of the control tests under the control of the Crown or of persons acting on behalf of the Crown, independently of any other person. If, however, it can be shown that under some other control test:

  • five or fewer participators, or
  • participators who are directors,

control the company and those participators (or director/participators) act independently of the Crown, the company is a close company.

The Crown for this purpose includes any Minister, Government Department or other person acting on behalf of the Crown.