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Groups

There is specific legislation which deals with groups of companies and intangible fixed assets. This looks at:

1. •

   definition of ‘group’

2. •

   intra-group transfers

3. •

   rollover relief between group companies

4. •

   rollover relief on acquisition of a subsidiary

5. •

   degrouping charges, including reallocation of the charge, allocation of rollover relief, and recovery from another group company or director

6. •

   intra-group payments for reliefs

CTA 2009, ss 764–799

This guidance note covers the definition of ‘group’ and intra-group transfers. For further guidance on the other areas, see the following guidance notes:

1. •

   Degrouping charges and elections ― IFAs

2. •

   Rollover relief on IFAs

3. •

   Reorganisations / reconstructions ― IFAs

Definition

The definition of a group follows the definition for capital gains purposes. A group is defined as:

1. •

   a parent company and its 75% subsidiaries

2. •

   75% subsidiaries of those subsidiaries, etc to include all subsidiaries which are ‘effective 51% subsidiaries’ of the parent company

There is no geographic restriction on the definition of a group, so