Section 606 | Groups

(1)For the purposes of this Part a company (“the principal company”) and all its 75% subsidiaries form a group; and if any of those subsidiaries have 75% subsidiaries the group includes them and their 75% subsidiaries, and so on.This is subject to subsection (2).

(2)A group does not include—

(a)a company (other than the principal company) which is not an effective 51% subsidiary of the principal company,

(b)Repealed

(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

(d)an open-ended investment company.

(3)A company cannot be a member of more than one group; and if a company would be a member of more than one group, section 170(6) of TCGA 1992 (capital gains tax: groups) applies to determine the group of which it is a member.

(4)Subsection (3) does not apply for the purposes of Chapter 10.

(5)In this section—

“effective 51% subsidiary” has the meaning given by section 170(7) of TCGA 1992 (groups of companies),

“75% subsidiary” has the meaning given by section 1154(3) (subsidiaries),

“open-ended investment company” has the meaning given by section 613.