Corporation Tax Act 2010 section 269CM

Joint venture companies

Section 269CM provides that a joint venture company is treated as a member of the same group as each company that jointly controls it, using international accounting standards to define what constitutes a joint venture.

• Where a company (the "joint venturer") jointly controls another company (the "joint venture company") together with one or more other parties, the joint venture company is treated as a member of any group to which the joint venturer belongs.
• This group membership treatment applies specifically for the purposes of the carried-forward losses restriction rules in this chapter of the Corporation Tax Act 2010.
• The meanings of "joint venture" and "jointly controlling a company that is a joint venture" are taken from the relevant provisions of international accounting standards (such as IFRS 11).
• The effect is that a single joint venture company may be treated as a member of more than one group simultaneously, if it is jointly controlled by companies belonging to different groups.