Corporation Tax Act 2010 section 357GD

Meaning of "group"

Section 357GD defines what constitutes a "group" for the purposes of the Patent Box regime, setting out five conditions under which companies are treated as associated with one another.

• A company is a member of a group if at least one other company is "associated" with it, and the group consists of that company plus all its associated companies.
• Two companies can be associated through consolidated accounts, a connection for an accounting period, or one holding a major interest in the other.
• Association can also arise indirectly, where a third company is linked to one company (through consolidation or connection) and holds a major interest in the other.
• The "consolidation condition" is met where two companies' results are required to be, would be but for an exemption, or are in fact fully included in group accounts prepared under the Companies Act 2006 or equivalent overseas legislation.