# Corporation Tax Act 2009, Section 767: Principal company cannot be 75% subsidiary of another company


(1) The general rule is that a company (“A”) is not the principal company of a group if it is itself a 75% subsidiary of another company (“B”).
(2) That rule is subject to subsection (3).
(3) A is the principal company of a group (“group C”) if—
(a) A and B are prevented from being members of another group by section 766,
(b) the requirements of sections 765 and 766 are met in relation to group C, and
(c) A being the principal company of group C does not enable a further company to be the principal company of a group of which A would be a member.

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Source: https://www.legislation.gov.uk/ukpga/2009/4/section/767 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2009/section-767
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.