Taxation (International and Other Provisions) Act 2010 section 259ZME

Groups of companies

Section 259ZME defines when two companies are considered to be members of the same group for the purposes of the Chapter dealing with double inclusion income surplus (DII surplus).

• Two companies are in the same group if one owns at least 75% of the other, or both are at least 75% owned by a third company.
• The 75% subsidiary test follows the same definition used for group relief purposes under Part 5 of the Corporation Tax Act 2010.
• Anti-avoidance rules from the Corporation Tax Act 2010 apply to prevent manipulation of group membership through arrangements to transfer companies.
• Where those anti-avoidance rules apply, references to a surrenderable amount are read as references to the DII surplus.