Section 1154 — Corporation Tax Act 2010: Meaning of “51% subsidiary”, “75% subsidiary” and “90% subsidiary”

Meaning of “51% subsidiary”, “75% subsidiary” and “90% subsidiary” 1154 1 Subsections (2) to (4) define, for the purposes of the Corporation Tax Acts, the circumstances in which a body corporate (“B”) is a 51% subsidiary, a 75% subsidiary or a 90% subsidiary of another body corporate (“A”).

2 B is a 51% subsidiary of A if more than 50% of B's ordinary share capital is owned directly or indirectly by A.

3 B is a 75% subsidiary of A if at least 75% of B's ordinary share capital is owned directly or indirectly by A.

4 B is a 90% subsidiary of A if at least 90% of B's ordinary share capital is owned directly by A.

5 For the purposes of subsections (2) and (3) ordinary share capital is owned “directly or indirectly” by a body corporate if it is owned by it—

a directly, b indirectly, or c partly directly and partly indirectly.

6 In this Chapter references to ownership are to be read as references to beneficial ownership.