The meanings of 'third company' and 'successor' for the purposes of arrangements that disqualify consortium relief CTM80605 are set out below.
This means a company which, ignoring the effect of any arrangements such as are described in CTM80605, is not a member of the same group as the holding or trading company in ICTA88/S410 (2)(b) to which the arrangements refer.
One company is a successor of another if it carries on, in whole or in part, a trade which the other company has ceased to carry on in certain circumstances where a balancing charge would not be chargeable on the ceasing company. The circumstances are where:
