# Capital Allowances Act 2001, Section 212E: Principal companies


(1) A company (“U”) is a principal company of C if—
(a) C is a qualifying 75% subsidiary of U, and
(b) U is not a qualifying 75% subsidiary of another company.
(2) A company (“V”) is a principal company of C if—
(a) C is a qualifying 75% subsidiary of U,
(b) U is a qualifying 75% subsidiary of V, and
(c) V is not a qualifying 75% subsidiary of another company.
(3) If V is a qualifying 75% subsidiary of another company (“W”), W is a principal company of C unless W is a qualifying 75% subsidiary of another company, and so on.
(4) A company (“X”) is a principal company of C if—
(a) C is owned by a consortium of which X is a member, or
(b) C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,
and X is not a qualifying 75% subsidiary of another company.
(5) A company (“Y”) is a principal company of C if—
(a) C is owned by a consortium of which X is a member, or
(b) C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,
and X is a qualifying 75% subsidiary of Y but Y is not a qualifying 75% subsidiary of another company.
(6) If Y is a qualifying 75% subsidiary of another company (“Z”), Z is a principal company of C unless Z is a qualifying 75% subsidiary of another company, and so on.
(7) A company that is a principal company of C by virtue of any of subsections (4) to (6) is a consortium principal company of C.

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Source: https://www.legislation.gov.uk/ukpga/2001/2/section/212E (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/section-212E
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.