Corporation Tax Act 2010 section 938E

Meaning of "group"

Section 938E defines what constitutes a "group" for the purposes of the provisions on group mismatches, by setting out the conditions under which companies are treated as associated with one another during a scheme period.

• A company belongs to a group if any other company is associated with it at any time during the scheme period, and the group comprises that company together with all its associated companies.
• Two companies are associated if they meet any one of five conditions: their results are consolidated (or could be), they are connected, one holds a major interest in the other, or a third company provides a link through consolidation or connection combined with a major interest.
• The "consolidation condition" is satisfied where two companies' financial results are required to appear in group accounts, would be required but for an exemption, or are in fact included in such accounts — whether prepared under the Companies Act 2006 or equivalent overseas legislation.
• "Connected" and "major interest" take their meanings from sections 466 to 471 and sections 473 to 474 of the Corporation Tax Act 2009 respectively.