Corporation Tax Act 2010 section 269BD

Meaning of "group"

Section 269BD defines what constitutes a "group" for the purposes of Part 7A (the carried-forward losses rules), based on accounting standards used for preparing consolidated financial statements.

• A "group" is defined by reference to international accounting standards (IAS/IFRS) on consolidated financial statements, regardless of whether the parent company actually reports under those standards.
• Where the parent company is resident outside the UK, in a territory where US GAAP is accepted practice, and it prepares its consolidated accounts under US GAAP, the US GAAP definition of a group may be used instead.
• A company is a member of a group if it is either the parent company or falls within the group as defined by the relevant accounting standards (IAS/IFRS or, where applicable, US GAAP).
• This accounting-based definition of "group" does not apply to the anti-avoidance rule in section 269CK, which instead uses a separate "connected persons" test under section 1122 of CTA 2010.