Part 8Intangible fixed assets
Chapter 8Groups of companies: introduction
Rules
767Principal company cannot be 75% subsidiary of another company
(1)
The general rule is that a company (“A”) is not the principal company of a group if it is itself a 75% subsidiary of another company (“B”).
(2)
That rule is subject to subsection (3).
(3)
A is the principal company of a group (“group C”) if—
(a)
A and B are prevented from being members of another group by section 766,
(b)
the requirements of sections 765 and 766 are met in relation to group C, and
(c)
A being the principal company of group C does not enable a further company to be the principal company of a group of which A would be a member.