Capital Allowances Act 2001 section 212H

Ownership proportion

Section 212H defines how to calculate a consortium principal company's "ownership proportion" in a company, which is relevant to determining whether a qualifying change has occurred for the purposes of the anti-avoidance rules on allowance buying.

• The ownership proportion is the lowest of three percentages: share capital owned, entitlement to distributable profits, and entitlement to assets on a winding-up
• All three percentages relate to the consortium principal company's beneficial interest in the relevant company
• The rules in Chapter 6 of Part 5 of the Corporation Tax Act 2010 are used to determine these percentages, mirroring how they apply for consortium group relief purposes
• Where the subsidiary company has no ordinary share capital, its members are treated as if they were equity holders for the purposes of these calculations