A consortium comprises the consortium members. In this part of the guidance these are also referred to as members of the consortium. For the purposes of group/consortium relief they must:
The company owned by the consortium may be:
There is a diagram showing the meaning of these terms at
The company directly owned by the consortium must not be a 75% subsidiary of any one company. The 90% trading subsidiaries of the holding company must not be 75% subsidiaries of any other company (ICTA88/S402 (3)). If this rule is broken, all relief must be claimed or surrendered by way of a group claim and no relief may be claimed or surrendered by virtue of the consortium relationship.
Consortium claims may be made both by the members of the consortium and by companies owned by the consortium. Consortium relief can pass both 'upwards' and 'downwards'.
A consortium claim cannot be made if a profit on the sale of the shares held by the member in the company directly owned by the consortium would be a trading receipt (ICTA88/S402 (4)).
Subject to certain conditions, consortium relief also extends to claims and surrenders made by a company that is a member of the consortium member's group. There is guidance on this at CTM80550 onwards.
References to ownership of shares and securities are references to beneficial ownership (ICTA88/S413 (6)).
References to ordinary share capital are to ordinary share capital as defined by ICTA88/S832 (1).