Section 767 — Corporation Tax Act 2009: Principal company cannot be 75% subsidiary of another company

Principal company cannot be 75% subsidiary of another company 767 1 The general rule is that a company (“A”) is not the principal company of a group if it is itself a 75% subsidiary of another company (“B”).

2 That rule is subject to subsection (3).

3 A is the principal company of a group (“group C”) if—

a A and B are prevented from being members of another group by section 766, b the requirements of sections 765 and 766 are met in relation to group C, and c A being the principal company of group C does not enable a further company to be the principal company of a group of which A would be a member.