Part 5Electricity generator levy
Groups, partnerships and joint ventures
287Groups
1
For the purposes of this Part, the following form a “group”—
a
a company that is not a 75% subsidiary of any other company, and
b
every company that is a 75% subsidiary—
i
of that company,
ii
of a 75% subsidiary of that company, or
iii
of a 75% subsidiary of a 75% subsidiary of that company, and so on.
2
The company in a group that is not a 75% subsidiary of any other company is the “principal member” of the group.
3
Every other member of the group is a “subsidiary member”.
4
A company (“B”) is a “75% subsidiary” of another company (“A”) if—
a
A is beneficially entitled to 75% or more of any profits available for distribution to equity holders of B,
b
A would be beneficially entitled to 75% or more of any assets of B available for distribution to its equity holders on a winding-up, or
c
at least 75% of B’s ordinary share capital is owned directly or indirectly by A.
5
Where as a result of the application of each of paragraphs (a) to (c) of subsection (4) a company would (ignoring this paragraph) be a member of more than one group, that company is to be treated as only being a 75% subsidiary of the first company it is a subsidiary of applying the rules in those paragraphs in order (starting with paragraph (a)).
6
If at any time a company that is a generating undertaking becomes a member of a group that is a generating undertaking (including a group that becomes a generating undertaking as a result of that company becoming a member), the final qualifying period of the company ends at that time.
7
If at any time a group ceases to be a group as a result of the principal member becoming a 75% subsidiary of another group, the final qualifying period of the group ends at that time.