PART 8A

Profits arising from the exploitation of patents etc
CHAPTER 7

Supplementary

Interpretation

Meaning of “group”
357GD
1
For the purposes of this Part a company (“company A”) is a member of a group at any time if any other company is at that time associated with company A.
2
The group consists of company A and each company in relation to which the condition in subsection (1) is met.
3
For the purposes of this section a company (“company B”) is associated with company A at a time (“
the relevant time
”) if any of the following five conditions is met.
4
The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.
5
The second condition is that there is a connection between company A and company B for the accounting period of company A in which the relevant time falls.
6
The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.
7
The fourth condition is that—
a
the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and
b
at the relevant time the third company has a major interest in company B.
8
The fifth condition is that—
a
there is a connection between company A and a third company for the accounting period of company A in which the relevant time falls, and
b
at the relevant time the third company has a major interest in company B.
9
In this section, the financial results of any two companies for any period meet “the consolidation condition” if—
a
they are required to be fully comprised in group accounts,
b
they would be required to be fully comprised in such accounts but for the application of an exemption, or
c
they are in fact fully comprised in such accounts.
10
In subsection (9) “
group accounts
” means accounts prepared under—
a
section 399 of the Companies Act 2006, or
b
any corresponding provision of the law of a country or territory outside the United Kingdom.
11
The following provisions apply for the purposes of this section—
- sections 466 to 471 of CTA 2009 (companies connected for accounting period), and
- sections 473 and 474 of CTA 2009 (meaning of “major interest”).
Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)