Inheritance Tax Act 1984 Schedule A1 paragraph 9

Close companies

Paragraph 9 of Schedule A1 defines what a "close company" means for the purposes of the Schedule, and explains what constitutes an interest in such a company, including who counts as a participator.

• A close company is one that meets the close company definition under the Corporation Tax Acts, or would do so if it were UK resident.
• An interest in a close company means the rights and interests that a participator holds in that company.
• A participator is anyone who falls within the meaning given by section 454 of the Corporation Tax Act 2010, or who would do so if the company were UK resident.
• Rights and interests in a close company include rights to share in the company's assets on a winding-up or in any other circumstances.