Income Tax Act 2007 section 141

The property managing subsidiaries requirement

Section 141 sets out the requirement that any subsidiary of the issuing company which manages property must be a qualifying 90% subsidiary of that company.

• If the issuing company has any subsidiaries that manage property, each one must be a qualifying 90% subsidiary of the company.
• A qualifying 90% subsidiary broadly means the parent company must hold at least 90% of the subsidiary's shares, voting rights and entitlement to assets on a winding up.
• This requirement must be met continuously throughout the relevant period, not just at a single point in time.
• The definitions of "property managing subsidiary" and "qualifying 90% subsidiary" are drawn from the Enterprise Investment Scheme rules in sections 188 and 190 respectively.