Finance Act 2006

134 Group Real Estate Investment Trusts

(1) A group of companies may become a group to which this Part applies; and for that purpose the provisions of this Part apply to a group of companies in the same way as to a company, subject to the modifications set out in Schedule 17.

(2) 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.

(3) But a group does not include—

(a) a company (other than the principal company) which is not an effective 51% subsidiary of the principal company,

(b) an insurance company,

(c) an insurance subsidiary, or

(d) an open-ended investment company.

(4) In this section—

(a) “effective 51% subsidiary” has the meaning given by section 170 of TCGA 1992 (groups of companies),

(b) “75% subsidiary” has the meaning given by section 838 of ICTA (subsidiaries),

(c) “insurance company” has the meaning given by section 431(2) of ICTA, and

(d) “insurance subsidiary” means a company in which 75% or more of the ordinary shares are held by one or more insurance companies.

(5) 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) shall apply to determine the group of which it is a member.

(6) Subsection (5) is subject to section 138.