Part 12Real Estate Investment Trusts

Chapter 11Part 12: supplementary

Interpretation

606Groups

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 F1section 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.