# Income and Corporation Taxes Act 1988, Paragraph 14

Extent: E+W+S+N.I.

(1) For the purposes of section 13AB and this Schedule a company and all its 51% subsidiaries form a group, and if any of those subsidiaries have 51% subsidiaries the group includes them and their 51% subsidiaries, and so on.
(2) The question whether a company is a 51% subsidiary shall be determined in accordance with section 838, subject to the following provisions.
(3) A company (“company A”) shall be treated for the purposes of this Schedule as if it were a 51% subsidiary of another company (“company B”) if company B has rights to, or in fact receives, more than 50% of the distributions made by company A.
(4) For the purposes of this paragraph a company shall be treated as not being the owner—
(a) of any share capital that it owns directly if a profit on the sale of the shares would be treated as a trading receipt of its trade, or
(b) of any share capital that it owns indirectly and that is owned directly by a body corporate for which a profit on the sale of the shares would be treated as a trading receipt of its trade.

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Source: https://www.legislation.gov.uk/ukpga/1988/1/schedule/A2/paragraph/14 (the official version)
Page: https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-A2/paragraph-14
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.