Section 1004 — Corporation Tax Act 2009: Groups, consortiums and commercial associations of companies

Groups, consortiums and commercial associations of companies 1004 1 This section applies for the purposes of this Part.

2 Two companies are members of the same group if one is a 51% subsidiary of the other or both are 51% subsidiaries of a third company. 3 “ Group transfer ” means a transfer of a business, or a part of a business, from one company that is a member of a group to another company that is, or two or more companies that are, members of the group.

4 A company is a parent company of another company if that other company is its 51% subsidiary.

5 A company (“the consortium company”) is owned by a consortium if—

a five or fewer companies (“the shareholding companies”) between them beneficially own at least 75% of the consortium company's ordinary share capital, and b each of the shareholding companies beneficially owns at least 10% of that capital.

6 Each shareholding company is a member of the consortium.

7 For the purposes of subsection (5) the shareholdings of members of a group of companies are to be treated as held by a single company.

8 And, in such a case, a member of the group of companies is a member of the consortium if the member beneficially owns some of the consortium company's ordinary share capital. 9 “ Commercial association of companies ” means a company together with such of its associated companies (as defined in section 449 of CTA 2010 ) as carry on businesses that are of such a nature that the businesses of the company and the associated companies, taken together, may be reasonably considered to make up a single composite undertaking.