There are several sets of provisions in the Taxes Acts which relate to 'close' companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or private family businesses will be close, but in many cases close company status may not be immediately apparent. The Flowchart - close company status is a useful aide memoir to determine close company status. CTA 2010, s 439
A close company is a company which is resident in the UK where it meets either Condition A or Condition B and does not fall within one of the specific exceptions (exceptions are discussed below).