Part 12 Real Estate Investment Trusts

Chapter 11 Part 12: supplementary

Interpretation

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) an insurance company,
(c) an insurance subsidiary, 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),
“insurance company” has the meaning given by section 65 of FA 2012,
“insurance subsidiary” means a company in which at least 75% of the ordinary shares are held by one or more insurance companies, and
“open-ended investment company” has the meaning given by section 613.
Words in s. 606(5) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 219