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Consortia—ownership requirements

In certain circumstances, two or more unconnected companies may decide to form or acquire a company which they own jointly. Such companies may form a consortium where the conditions for group relief are not met (see D2.232 for the interaction between group relief and consortium relief). The investing companies are referred to as consortium members with the company that they own being referred to as the consortium company.

As with groups, it is only companies that can form a consortium for these purposes. Individuals and other non-corporate persons cannot form part of the consortium.

A company is a consortium company if¹:

1. Ìý

   •ÌýÌýÌýÌý it is not a 75% subsidiary of any company (otherwise it would fall within the provisions for group relief, see D2.205)

2. Ìý

   •ÌýÌýÌýÌý at least 75% of its ordinary share capital is beneficially owned (D2.109) by two or more companies (consortium members)

3. Ìý

   •ÌýÌýÌýÌý each consortium members owns at least 5% of that share capital

See CTM80530 and