Corp Tax - Chapter 19

Question 1

Close Company Definition

Answer 1

UK Resident

Controlled by either:

• five or fewer participators (shareholders); or
• any number of directors who are also shareholders.

Question 2

Is a manager who owns 20% of the company included?

Answer 2

Yes

Question 3

For close company purposes, associates include:

Answer 3

• the individual’s immediate family:
• business partners (but not co-directors);
• trustees of trusts set up by the individual or any of their immediate family;
• nominees (ie an individual who owns shares on behalf of someone else).

Question 4

Company Exemptions…

Answer 4

• non-resident companies;
• registered industrial and provident societies and building societies;
• companies controlled on behalf of the Crown;
• companies controlled by open companies;
• quoted companies with substantial public interest.

Question 5

Quoted Companies with Substantial Public Interest

Answer 5

Stock exchange with share dealing in past 12m

Public > 35%

Public = non-close co, open pension funds, shares held by persons other than principal members.