Section 796 Interpretation of section 795

For the purposes of section 795 and this section—

• “the relevant accounting period” is the accounting period in which the degrouping charge falls to be brought into account by A,

• “the relevant time” is—

  1. (a)

     in a case within section 780, when A ceased to be a member of the group,

  2. (b)

     in a case within section 785, when A ceased to meet the qualifying condition (within the meaning of that section), and

  3. (c)

     if there has been an election under section 792, the time that would have been the relevant time under paragraph (a) or (b) had there been no such election, and

• “the relevant asset” is the asset in respect of which the degrouping charge arises.

For the purposes of section 795 the amount of corporation tax referable to a degrouping charge is the difference between—

References in section 795 and this section to a degrouping charge are to—

In section 795 and this section—

• “director”, in relation to a company—

  1. (a)

     has the meaning given by section 67(1) of ITEPA 2003 (read with section 67(2) of that Act) and

  2. (b)

     includes any person falling within F1section 452(1) of CTA 2010 ,

• “controlling director”, in relation to a company, means a director of the company who has control of it, and

• “group” and “principal company” have the meaning that would be given by Chapter 8 if in that Chapter for references to 75% subsidiaries there were substituted references to 51% subsidiaries.

In subsection (4) “control” F2is to be read in accordance with sections 450 and 451 of CTA 2010.