Section 188CI — Corporation Tax Act 2010: Consortium condition 4

Consortium condition 4 188CI 1 Consortium condition 4 is met 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 not a member of the consortium, d the claimant 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, and f the claimant company and the surrendering company are both UK related.

2 But consortium condition 4 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 surrendering company, or b if the surrendering 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.