Finance Act 1972

Groups of companies

10 (1) In Part X of the Taxes Act and this Schedule the expressions " in respect of shares in a company " and " in respect of securities of a company " in relation to a company which is a member of a 90 per cent. group, mean respectively in respect of shares in that company or any other company in the group and in respect of securities of that company or any other company in the group.

(2) Without prejudice to section 233(2)(b) of that Act as extended by the foregoing sub-paragraph, in relation to a company which is a member of a 90 per cent. group, " distribution" includes anything distributed out of assets of the company (whether in cash or otherwise) in respect of shares in or securities of another company in the group.

(3) Nothing in this paragraph shall require a company to be treated as making a distribution to any other company which is in the same group and is resident in the United Kingdom.

(4) For the purposes of this paragraph a principal company and all its 90 per cent. subsidiaries form a "90 per cent. group" and " principal company" means a company of which another company is a subsidiary.