Corporation Tax Act 2010 section 1099

Other definitions etc

Section 1099 provides key definitions and interpretive rules that apply throughout the demergers chapter, including the meanings of terms such as "group", "holding company", "trading company" and "trade".

• A "group" means a company with one or more 75% subsidiaries taken together; a "holding company" is one whose main business is holding shares or securities in its 75% subsidiaries; a "trading company" is one whose business consists wholly or mainly of carrying on a trade or trades; and a "trading group" is a group whose members' combined business consists wholly or mainly of carrying on a trade or trades.
• "Trade" for this chapter excludes dealing in shares, securities, land, trades or commodity futures, and "trading activities" is read accordingly; "shares" includes stock; and "control" has the same meaning as in the close companies rules in Part 10.
• When determining whether a company whose shares are transferred by the distributing company is a 75% subsidiary, any share capital of that company owned indirectly by the distributing company is ignored; and share capital held directly or indirectly as trading stock is also disregarded for the purpose of determining 75% subsidiary status throughout the chapter.
• "Member" of a company generally means a person who holds shares forming part of the ordinary share capital, except in the context of chargeable payments under section 1088(2), where it also includes persons who are members otherwise than by holding ordinary share capital.