{
  "url": "https://openlegislation.uk/corporation-tax-act-2010/section-18M",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2010/section-18M.json",
  "legislation": "ukpga/2010/4",
  "legislation_title": "Corporation Tax Act 2010",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2010",
  "path": "section/18M",
  "kind": "section",
  "number": "18M",
  "heading": "Interpretation of section 18L(3)",
  "text": "(1) This section applies for the purposes of section 18L(3).\n(2) In addition to meeting the requirements of section 1154(2), a company (“A”) is a 51% subsidiary of another company (“B”) only at times when—\n(a) B would be beneficially entitled to more than 50% of any profits available for distribution to equity holders of A, and\n(b) B would be beneficially entitled to more than 50% of any assets of A available for distribution to its equity holders on a winding up.\n(3) In determining whether or not a company is a 51% subsidiary of another company (“C”), C is treated as not owning share capital if—\n(a) it owns the share capital indirectly,\n(b) the share capital is owned directly by a company (“D”), and\n(c) a profit on the sale of the shares would be a trading receipt for D.\n(4) A company is a “trading company” if its business consists wholly or mainly of carrying on one or more trades.\n(5) A company is a “relevant holding company” if its business consists wholly or mainly of holding shares in or securities of trading companies (as defined by subsection (4)) that are its 90% subsidiaries.\n(6) A company is a “quasi-subsidiary” of R if—\n(a) it is owned by a consortium of which R is a member,\n(b) it is not a 75% subsidiary of any company, and\n(c) no arrangements of any kind (whether in writing or not) exist as a result of which it could become a 75% subsidiary of any company.\n(7) A company is owned by a consortium if at least 75% of the company's ordinary share capital is beneficially owned by two or more companies each of which—\n(a) beneficially owns at least 5% of that capital,\n(b) would be beneficially entitled to at least 5% of any profits available for distribution to equity holders of the company, and\n(c) would be beneficially entitled to at least 5% of any asset of the company available for distribution to its equity holders on a winding up.\n(8) The companies meeting those conditions are called the members of the consortium.\n(9) Chapter 6 of Part 5 (equity holders and profits or assets available for distribution) applies for the purposes of this section as it applies for the purposes of section 151(4)(a) and (b).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 3A inserted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 3"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2010/4/section/18M",
    "retrieved_at": "2026-10-29T09:10:29.433154+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}