Part 8Charity accounts, reports and returns

CHAPTER 2Group accounts

141“Parent charity”, “subsidiary undertaking” and “group”

1

This section applies for the purposes of this Part.

2

A charity is a parent charity if it is (or is to be treated as) a parent undertaking in relation to one or more other undertakings in accordance with the provisions of section 1162 of, and Schedule 7 to, the Companies Act 2006.

3

Each undertaking in relation to which a parent charity is (or is to be treated as) a parent undertaking in accordance with those provisions is a subsidiary undertaking in relation to the parent charity.

4

But subsection (3) does not have the result that any of the following is a subsidiary undertaking—

a

any special trusts of a charity,

b

any institution which, by virtue of a direction under section 12(1), is to be treated as forming part of a charity for the purposes of this Part, or

c

any charity to which a direction under section 12(2) applies for the purposes of this Part.

5

“The group”, in relation to a parent charity, means that charity and its subsidiary undertaking or undertakings, and any reference to the members of the group is to be read accordingly.

6

For the purposes of this section and the operation for those purposes of section 1162 of, and Schedule 7 to, the Companies Act 2006 “undertaking” means—

a

an undertaking as defined by section 1161(1) of the 2006 Act, or

b

a charity which is not an undertaking as so defined.