Section 606 — Corporation Tax Act 2010: Groups

Groups 606 1 For the purposes of this Part a company (“the principal company”) and all its 75% subsidiaries form a group;

and if any of those subsidiaries have 75% subsidiaries the group includes them and their 75% subsidiaries, and so on. This is subject to subsection (2).

2 A group does not include—

a a company (other than the principal company) which is not an effective 51% subsidiary of the principal company, b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or d an open-ended investment company.

3 A company cannot be a member of more than one group;

and if a company would be a member of more than one group, section 170(6) of TCGA 1992 (capital gains tax: groups) applies to determine the group of which it is a member.

4 Subsection (3) does not apply for the purposes of Chapter 10.

5 In this section— “ effective 51% subsidiary ” has the meaning given by section 170(7) of TCGA 1992 (groups of companies), “ 75% subsidiary ” has the meaning given by section 1154(3) (subsidiaries), ... ... “ open-ended investment company ” has the meaning given by section 613.