Corporation Tax Act 2010 section 168

Meaning of "the relevant accounting period"

Section 168 defines the term "the relevant accounting period" used when calculating a company's entitlement to profits or assets for the purposes of group relief and consortium ownership tests.

• The "relevant accounting period" is the accounting period of company B in which the point in time being tested falls
• This definition applies when determining the proportion of profits or assets to which company A would be beneficially entitled
• The calculation is used to establish whether a company is a member of a group or is owned by a consortium
• Separate rules (now repealed) previously addressed how to make these calculations for non-UK resident companies