Part 5Group relief

Chapter 5Subsidiaries, groups and consortiums

Explanations of terms

153Companies owned by consortiums and members of consortiums

(1)

For the purposes of this Part a company is owned by a consortium if—

(a)

the company is not a 75% subsidiary of any company, and

(b)

at least 75% of the company’s ordinary share capital is beneficially owned by other companies each of which beneficially owns at least 5% of that capital.

(2)

The other companies each owning at least 5% of the share capital are the members of the consortium for the purposes of this Part.

(3)

If—

(a)

a trading company is a 90% subsidiary of a holding company and is not a 75% subsidiary of any company apart from the holding company, and

(b)

as a result of subsection (1), the holding company is owned by a consortium,

then for the purposes of this Part the trading company is also owned by the consortium.