Commentary

D1.645 Corporate intangibles in groups—summary and definition of a group

Corporate tax
Corporate tax | Commentary

D1.645 Corporate intangibles in groups—summary and definition of a group

Corporate tax | Commentary

Corporate intangible regime—groups

D1.645 Corporate intangibles in groups—summary and definition of a group

The corporate intangible regime includes self-contained provisions relating to groups of companies.

The group provision commentary is summarised as follows:

SummaryLink
Definition of a groupBelow
Transfers of an intangible asset within a groupD1.646
Intangible assets—rollover relief and groupsD1.647
Intangible assets—degrouping chargesD1.649
Intangible assets—exemptions from the degrouping charge D1.650
Intangible assets—reallocation of degrouping charge within groupD1.652
Intangible assets degrouping charge—recovery of tax D1.653
Intangible assets—payments between group members for reliefsD1.654

Definition of a company and a group

The definition of a group is set out within the corporate intangible regime but follows the definition for capital gains provisions (see D2.305). A group includes the principal company and companies which are its 75% subsidiaries. If any of those subsidiaries themselves have 75% subsidiaries, they too are included in the group, and so on1. The meaning of 75% subsidiaries is a holding of 75% of the ordinary share capital either directly or indirectly2.

For the purposes of the definition of groups within the corporate intangible regime, references to a company apply only to3:

  1.  

    •     a company within the meaning of the Companies Act 2006

  2.  

    •     a company (other than a limited liability partnership) constituted under any other Act or by a royal charter or letters patent

  3.  

    •     a company formed under the law of a country or territory outside the UK

  4.  

    •     a registered society (formerly a registered industrial and provident society, prior to 1 August 2014)

  5.  

    •     an incorporated friendly society within the meaning

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