C1Part 5Group relief

Annotations:
Modifications etc. (not altering text)
C1

Pt. 5 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 125 (with s. 147, Sch. 17)

Chapter 4Claims for group relief

Limitations on group relief if claim based on consortium condition 1, 2 or 3

144Condition 1: claimant company owned by consortium

1

This section applies if—

a

the claimant company makes a claim for group relief based on consortium condition 1, and

b

it is the claimant company that is owned by the consortium.

2

The group relief to be given on the claim is limited to the ownership proportion of the claimant company's F4available total profits of the overlapping period (see section 140(2) to determine the F4available total profits of the overlapping period).

3

The ownership proportion is the same as the lowest of the following proportions—

a

the proportion of the ordinary share capital of the claimant company that is beneficially owned by the surrendering company,

b

the proportion of any profits available for distribution to equity holders of the claimant company to which the surrendering company is beneficially entitled (see Chapter 6), F1...

c

the proportion of any assets of the claimant company available for distribution to such equity holders on a winding up to which the surrendering company would be beneficially entitled (see Chapter 6) F2, and

d

the proportion of the voting power in the claimant company that is directly possessed by the surrendering company.

4

For the purposes of subsection (3)—

a

the proportions mentioned in F3paragraphs (a) to (d) of that subsection are those prevailing during the overlapping period, and

b

if any of those proportions changes during that period, use the average of that proportion during that period.

5

If the claimant company is owned by the consortium as a result of section 153(3) (consortiums involving holding companies), references in subsection (3) to the claimant company are to be read as references to the holding company in question.

6

In this section “the overlapping period” is to be read in accordance with section 142.