Taxation of Chargeable Gains Act 1992 Schedule 7AC paragraph 26

Meaning of "company", "group" and related expressions

Paragraph 26 of Schedule 7AC defines the key terms "company", "group", "subgroup", "holding company" and "51% subsidiary" as they are used throughout the Schedule dealing with the substantial shareholding exemption.

• A "group" for the purposes of this Schedule uses a lower ownership threshold of 51% rather than the usual 75% used for capital gains group purposes.
• A "subgroup" is a collection of companies that would form a group in their own right, but for the fact that one of them is itself a 51% subsidiary of another company higher up the chain.
• A "holding company" is the top company (principal company) of a group or, in the case of a subgroup, the company that would be the top company but for being a 51% subsidiary of another company.
• The definitions apply with necessary modifications to companies incorporated outside the United Kingdom, and share capital of a registered society (such as a co-operative) is treated as ordinary share capital when determining 51% subsidiary status.