Section 188CG — Corporation Tax Act 2010: Consortium condition 2

Consortium condition 2 188CG 1 Consortium condition 2 is met 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 not a member of the consortium, d the surrendering company is a member of the same group of companies as a third company (“the link company”),

e the link company is a member of the consortium, f the surrendering company and the claimant company are both UK related.

2 But consortium condition 2 is not met if a profit on a sale within subsection (3) by the link company would be a trading receipt of that company.

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

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