CTM80535 | Consortia: group relief: 90% subsidiary
From HM Revenue & Customs · Company Taxation Manual
,
A trading company which is a direct 90% subsidiary of a holding company owned by a consortium may itself be a ‘company owned by a consortium’ (). Such a subsidiary is a 90% subsidiary if the holding company:
directly beneficially owns not less than 90% of the subsidiary company’s ordinary share capital as defined in ,
and
is beneficially entitled to not less than 90% of:
any profits available for distribution to equity holders of the subsidiary company,
and
any assets of the subsidiary company which would be available for distribution to its equity holders on a winding-up (see ).
The detailed rules in the second bullet above are in . The description of how these apply is in onwards.
Where the conditions above are not met for part of an accounting period (during which there is otherwise a consortium relationship) that period of interruption is excluded from the calculation under /Ss138 to 142 of the amounts available for claim or surrender in the overlapping period ().