Corporation Tax Act 2010 section 979

Amount payable in consortium case

Section 979 determines how much unpaid corporation tax a related company can be required to pay where the non-UK resident company that owes the tax is owned by a consortium.

• In a consortium case, HMRC can require a related company to pay a proportion of the unpaid tax corresponding to that company's share in the consortium during the relevant period
• A consortium member's share is the lowest of three percentages: its share of ordinary share capital, its entitlement to distributable profits, and its entitlement to assets on a winding up
• Where a company qualifies as a related company both directly as a consortium member and through group membership with a consortium member, the higher of the two calculated amounts applies
• If any of the relevant percentages have fluctuated during the period, an average over the period is used instead

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