UTT12200 - Scope: "group" definition

A company is a member of a group for Uncertain Tax Treatment (UTT) if another company is its 51% subsidiary, or it is a 51% subsidiary of another company. Two companies are members of the same group if one is a 51% subsidiary of the other or both are 51% subsidiaries of another company.

This meaning of a 51% subsidiary uses the Chapter 3, Part 24 of CTA 2010 interpretation as it applies for the purposes of the Corporation Tax Acts.

An exception to this is where a Qualifying Asset Holding Company (QAHC) has a 51% subsidiary company that it holds as a market value investment. In this scenario, the 51% subsidiary company and any 51% subsidiary of that company can be disregarded as members of the QAHC’s group for the purposes of the UTT legislation.

Although Public Authorities, and 100% wholly owned subsidiaries of a public authority (or authorities) are not within scope of UTT (refer UTT12300), partially owned subsidiaries of a Public Authority are included, and where there is more than one subsidiary in the group, their turnover and balance sheet amounts must be aggregated to determine whether the thresholds are met.

A partnership or LLP cannot be a member of a group of companies for the purposes of the notification requirement.

There is not an equivalent grouping requirement for partnerships.