Finance Act 2000

Limit on amount payable in consortium case U.K.

5 (1) In a consortium case, the amount that the company may be required to pay by notice under this Schedule is limited to the proportion of the unpaid tax corresponding— U.K.

(a) in the case of a company falling only within paragraph 2(1)(b), to the share which that company has had in the consortium for the relevant period;

(b) in the case of a company falling only within paragraph 2(1)(c), to the share which companies that have been members of the same group of companies as that company have had in the consortium for the relevant period;

(c) in the case of a company falling within paragraph 2(1)(b) and (c), to whichever is the greater of the amounts given by paragraphs (a) and (b) above.

(2) A “consortium case” means a case where the company falls within paragraph 2(1)(b) or (c) (or both), but does not fall within paragraph 2(1)(a).

(3) A member’s share in a consortium, in relation to the relevant period, is whichever is the lowest in that period of the following percentages—

(a) the percentage of the ordinary share capital of the taxpayer company which is beneficially owned by that member;

(b) the percentage to which that member is beneficially entitled of any profits available for distribution to equity holders of the taxpayer company;

(c) the percentage to which that member would be beneficially entitled of any assets of the taxpayer company available for distribution to its equity holders on a winding-up.

If any of those percentages has fluctuated in the relevant period, the average percentage over the period shall be taken.

(4) Schedule 18 to the Taxes Act 1988 (equity holders and profits or assets available for distribution) applies for the purposes of sub-paragraph (3) above as it applies for the purposes of section 403C of that Act.