Part 24 Corporation Tax Acts definitions etc

Chapter 3 Subsidiaries

1156 Calculation of amounts owned indirectly: main rules
(1) If a body corporate (“A”) directly owns the whole of the ordinary share capital of another body corporate (“B”), A is treated as indirectly owning the whole of any ordinary share capital that is owned directly or indirectly by B.
(2) If a body corporate (“A”) directly owns a fraction of the ordinary share capital of another body corporate (“B”) and B directly or indirectly owns ordinary share capital of a third body corporate (“C”), A is treated as indirectly owning the amount of C's ordinary share capital given by the formula—
F×M
where—
F is the fraction of B's ordinary share capital that is owned by A, and
M is the amount of the ordinary share capital of C that is owned directly or indirectly by B.
(3) For the purposes of subsections (1) and (2), the amount of any ordinary share capital that is owned indirectly by B is calculated using subsection (1) or (2), or both, as appropriate.