Taxes Consolidation Act 1997 Schedule 9 paragraph 6

Provisions as to ownership

Schedule 9 sets out the rules for determining ownership of companies for the purposes of the loss-buying provisions in sections 401 and 679(4), including the definition of a 75 per cent subsidiary and how indirect ownership is calculated.

• All references to ownership mean beneficial ownership, and references to acquisition are to be read accordingly.
• A company is a 75 per cent subsidiary of another company if at least 75 per cent of its ordinary share capital is beneficially owned by that other company, whether directly, indirectly through other companies, or by a combination of both.
• Where ownership is held indirectly through one or more intermediate companies, the percentage of ordinary share capital owned is determined by applying the rules in section 9(5) to (10).
• The term "share" includes "stock" for the purposes of the Schedule.