606GroupsU.K.
(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,
F1(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(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),
F3...
F3...
“open-ended investment company” has the meaning given by section 613.
Textual Amendments
F1S. 606(2)(b) omitted (22.2.2024) by virtue of Finance Act 2024 (c. 3), Sch. 7 para. 6(2)
F2S. 606(2)(c) omitted (22.2.2024) by virtue of Finance Act 2024 (c. 3), Sch. 7 para. 6(2)
F3Words in s. 606(5) omitted (22.2.2024) by virtue of Finance Act 2024 (c. 3), Sch. 7 para. 6(3)