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Home / Simons-Taxes /Corporate tax /Part D7A Other special sectors /Division D7.9 Oil extraction, related activities and electricity generation /Electricity generation / D7.952 EGL—groups, partnerships and joint ventures
Commentary

D7.952 EGL—groups, partnerships and joint ventures

Corporate tax

There are specific provisions for the electricity generator levy (EGL) that govern groups, partnerships and joint ventures. These are set out below. For an overview of the EGL, see D7.950.

Groups and the EGL

For the purposes of the EGL, a group is a 75% group. This means that the following form a group1:

  1. Ìý

    •ÌýÌýÌýÌý a company that is not a 75% subsidiary of any other company and

  2. Ìý

    •ÌýÌýÌýÌý every company that is a 75% subsidiary of:

    1. Ìý

      –ÌýÌýÌýÌý that company

    2. Ìý

      –ÌýÌýÌýÌý a 75% subsidiary of that company or

    3. Ìý

      –ÌýÌýÌýÌý a 75% subsidiary of a 75% subsidiary of that company

  3. Ìý

    and so on

The company in a group that is not a 75% subsidiary of any other company is the principal member of the group and every other member of the group is a subsidiary member2.

A company (B) is a 75% subsidiary of another company (A) if3:

  1. Ìý

    •ÌýÌýÌýÌý A is beneficially entitled to 75% or more

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