SCHEDULE 23Corporation tax relief for employee share acquisition
Part 5Supplementary provisions
Meaning of “consortium” and “commercial association of companies”
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(1)
For the purposes of this Schedule a company is a member of a consortium owning another company if it is one of five or fewer companies—
(a)
that between them beneficially own not less than 75% of the other company’s ordinary share capital, and
(b)
each of which beneficially owns not less than 10% of that capital.
For this purpose the shareholdings of members of a group of companies shall be treated as held by a single company.
(2)
In this Schedule a “commercial association of companies” means a company together with such of its associated companies as carry on businesses that are of such a nature that the businesses of the company and the associated companies, taken together, may be reasonably considered to make up a single composite undertaking.
“Associated company” here has the meaning given by section 416 of the Taxes Act 1988.