Income Tax Act 2007 section 614DE

Parent undertakings and consolidated group accounts

Section 614DE ensures that parent undertakings which are not required to prepare consolidated group accounts are nonetheless treated as if they were, for the purposes of the plant and life assurance business leasing provisions in Part 11A.

• A body corporate that is a parent undertaking but is not required to prepare consolidated group accounts under generally accepted accounting practice is treated as though it were so required
• This deemed requirement applies regardless of where the body corporate is incorporated, including companies incorporated outside the United Kingdom
• The definition of "parent undertaking" follows section 1162 of the Companies Act 2006
• The effect is to ensure that leases within Part 11A can be properly identified and rental income calculated, even where no consolidated accounts are actually prepared