Taxation (International and Other Provisions) Act 2010 section 445

Joint venture groups

Section 445 extends the joint venture company infrastructure election rules to cover situations where the joint venture company heads up a multi-company group, setting out the conditions that must be met by the other group members and how those members are treated when an election is made.

• This section applies where the joint venture company is the ultimate parent of a multi-company worldwide group at any time during the accounting period.
• An election by the joint venture company under section 444 only has effect if every other group member is a qualifying infrastructure company, is a wholly-owned subsidiary of the joint venture company throughout the period, and has the same accounting periods as the joint venture company.
• When checking whether the loan-related conditions in section 444(1)(c) to (e) are satisfied, any loans made to other group members are treated as if they had been made directly to the joint venture company itself.
• If the joint venture company makes a valid election, the modifications that section 444 applies to the joint venture company (under subsections (5) to (10) of that section) also apply to each of the other group members.