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Home / Simons-Taxes /Corporate tax /Part D2 Groups of companies /Division D2.3 Group capital gains /Group capital gains—definition of a group / D2.307 Group capital gains—leaving a group
Commentary

D2.307 Group capital gains—leaving a group

Corporate tax

It is often necessary to establish whether a capital gains group remains the same group after there has been a change in its composition, and whether as a consequence a company has left the group.

Specific provisions1 stipulate that a group remains the same group where:

  1. Ìý

    (a)ÌýÌýÌýÌý the same company remains the principal company of the group

  2. Ìý

    (b)ÌýÌýÌýÌý the principal company of a group becomes a member of another group. In this situation, the two groups are regarded as the same group2. This consequence can be continued indefinitely if, say, the new principal company itself becomes a 75% subsidiary of another company, etc.

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