Corporation Tax Act 2010 section 1155

Indirect ownership of ordinary share capital

Section 1155 explains what it means for a body corporate to own ordinary share capital indirectly, that is, through one or more intermediate bodies corporate arranged in a chain of ownership.

• Ordinary share capital is owned indirectly by a body corporate when it is held through one or more other bodies corporate in a chain.
• Where three or more bodies corporate are arranged in a series, each one (except the last) owns ordinary share capital of the body immediately below it.
• If body corporate A is higher in the chain than body corporate B, but not immediately above it, A is treated as owning ordinary share capital of B through every intermediate body corporate between them.
• Sections 1156 and 1157 set out the rules for calculating how much ordinary share capital a body corporate owns indirectly, or partly directly and partly indirectly.