Textual Amendments
F1Pt. 8 Ch. 3A inserted (with effect in accordance with Sch. 1 para. 22 of the amending Act) by Finance Act 2014 (c. 26), Sch. 1 para. 5(3)
(1)For the purposes of this Chapter a company's augmented profits of an accounting period are—
(a)the company's adjusted taxable total profits of that period, plus
(b)any franked investment income received by the company that is not excluded by subsection (3).
(2)A company's “adjusted taxable total profits” of a period are what would have been the company's taxable total profits of the period in the absence of sections 1(2A), 2B and 8(4A) of TCGA 1992 and section 2(2A) of CTA 2009 (certain gains on relevant high value disposals by companies etc chargeable to capital gains tax not corporation tax).
(3)This subsection excludes any franked investment income which the company (“the receiving company”) receives from a company which is—
(a)a 51% subsidiary of—
(i)the receiving company, or
(ii)a company of which the receiving company is a 51% subsidiary, or
(b)a trading company or relevant holding company that is a quasi-subsidiary of the receiving company.
(4)For the purposes of subsection (3)(b) a company is a quasi-subsidiary of the receiving company if—
(a)it is owned by a consortium of which the receiving company is a member,
(b)it is not a 75% subsidiary of any company, and
(c)no arrangements of any kind (whether in writing or not) exist by virtue of which it could become a 75% subsidiary of any company.
Modifications etc. (not altering text)
C1S. 279G modified (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 39(1)(2)(a)
(1)For the purposes of section 279G(3)(a), a company (“A”) is a 51% subsidiary of another company (“B”) only at times when—
(a)B would be beneficially entitled to more than 50% of any profits available for distribution to equity holders of A, and
(b)B would be beneficially entitled to more than 50% of any assets of A available for distribution to its equity holders on a winding up.
(2)The requirement in subsection (1) is in addition to the requirements of section 1154(2) (meaning of 51% subsidiary).
(3)In determining for the purposes of section 279G(3)(a) whether or not a company is a 51% subsidiary of another company (“C”), C is treated as not being the owner of share capital if—
(a)it owns the share capital indirectly,
(b)the share capital is owned directly by a company (“D”), and
(c)a profit on the sale of the shares would be a trading receipt for D.
(4)In section 279G(3)(b) and this section—
“trading company” means a company whose business consists wholly or mainly of carrying on a trade or trades, and
“relevant holding company” means a company whose business consists wholly or mainly of holding shares in or securities of trading companies that are its 90% subsidiaries.
(5)For the purposes of section 279G(4), a company is owned by a consortium if at least 75% of the company's ordinary share capital is beneficially owned by two or more companies each of which—
(a)beneficially owns at least 5% of that capital,
(b)would be beneficially entitled to at least 5% of any profits available for distribution to equity holders of the company, and
(c)would be beneficially entitled to at least 5% of any asset of the company available for distribution to its equity holders on a winding up.
(6)The companies meeting those conditions are called the members of the consortium.
(7)Chapter 6 of Part 5 (equity holders and profits or assets available for distribution) applies for the purposes of subsections (1) and (5) as it applies for the purposes of section 151(4)(a) and (b).]