Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 16 paragraph 3

Group relief: definitions and group membership

Schedule 16 paragraph 3 defines what constitutes a "company" and a "group" for the purposes of claiming group relief from land transaction tax, and sets out the 75% ownership tests that must be satisfied.

• A "company" means any body corporate, and two companies are in the same group if one is a 75% subsidiary of the other, or both are 75% subsidiaries of a third company.
• The 75% subsidiary test requires the parent to beneficially own at least 75% of the subsidiary's ordinary share capital, be entitled to at least 75% of distributable profits, and be entitled to at least 75% of assets available on a winding-up.
• Ownership of share capital can be held directly or indirectly through intermediate companies, with indirect ownership calculated using the rules in sections 1155 to 1157 of the Corporation Tax Act 2010.
• "Ordinary share capital" means all issued share capital except fixed-rate preference shares that carry no right to share in the company's profits beyond the fixed dividend.