SCHEDULE 15Tax treatment of financing costs and income
Part 10Other interpretative provisions
Meaning of “UK group company” and “relevant group company”
86
(1)
This paragraph applies for the purposes of this Schedule.
(2)
A company is a “UK group company” if—
(a)
it meets condition A, and
(b)
it is a member of the worldwide group.
(3)
A company is a “relevant group company” if—
(a)
it meets condition A, and
(b)
it meets condition B.
(4)
Condition A is that the company—
(a)
is resident in the United Kingdom, or
(b)
is not resident in the United Kingdom and is carrying on a trade in the United Kingdom through a permanent establishment in the United Kingdom.
(5)
Condition B is that the company is either—
(a)
the ultimate parent of the worldwide group, or
(b)
a relevant subsidiary of the ultimate parent of the worldwide group.
(6)
A company is a “relevant subsidiary” of the ultimate parent of the worldwide group if the company is a member of the worldwide group and—
(a)
the company is a 75% subsidiary of the ultimate parent,
(b)
the ultimate parent is beneficially entitled to at least 75% of any profits available for distribution to equity holders of the company, or
(c)
the ultimate parent would be beneficially entitled to at least 75% of any assets of the company available for distribution to its equity holders on a winding-up.
(7)
Schedule 18 to ICTA (equity holders and profits or assets available for distribution) applies in relation to sub-paragraph (6)(b) and (c) as it applies in relation to section 413(7) of that Act.