Corporation Tax Act 2010 section 397

Companies owned by consortiums and members of consortiums

Section 397 defines what it means for a company to be owned by a consortium, and who the members of that consortium are, for the purposes of the sales of lessors rules.

• A consortium-owned company must not be a qualifying 75% subsidiary of any other company
• At least 75% of the company's ordinary share capital must be beneficially owned between a group of other companies
• Each of those other companies must own at least 5% of that ordinary share capital
• The companies that collectively hold the shares meeting these conditions are the members of the consortium