Section 1156 — Corporation Tax Act 2010: Calculation of amounts owned indirectly: main rules

Calculation of amounts owned indirectly: main rules 1156 1 If a body corporate (“A”) directly owns the whole of the ordinary share capital of another body corporate (“B”), A is treated as indirectly owning the whole of any ordinary share capital that is owned directly or indirectly by B.

2 If a body corporate (“A”) directly owns a fraction of the ordinary share capital of another body corporate (“B”) and B directly or indirectly owns ordinary share capital of a third body corporate (“C”), A is treated as indirectly owning the amount of C's ordinary share capital given by the formula— F × M where— F is the fraction of B's ordinary share capital that is owned by A, and M is the amount of the ordinary share capital of C that is owned directly or indirectly by B.

3 For the purposes of subsections (1) and (2), the amount of any ordinary share capital that is owned indirectly by B is calculated using subsection (1) or (2), or both, as appropriate.