Section 132 — Corporation Tax Act 2010: Consortium condition 1

Consortium condition 1 132 1 Consortium condition 1 is met if subsection (2) or (3) applies.

2 This subsection applies if—

a the surrendering company is a trading company or a holding company, b the surrendering company is owned by a consortium, c the claimant company is a member of the consortium, and d both companies are UK related.

3 This subsection applies if—

a the claimant company is a trading company or a holding company, b the claimant company is owned by a consortium, c the surrendering company is a member of the consortium, and d both companies are UK related.

4 But consortium condition 1 is not met if a profit on a sale within subsection (5) by the company that is the member of the consortium would be a trading receipt of the member.

5 A sale is within this subsection if it is a sale of—

a the share capital the member owns in the company owned by the consortium, or b if that company is owned by the consortium as a result of section 153(3) (consortiums involving holding companies), the share capital the member owns in the holding company in question.