Introduction Equity holders Overview Section 146: Conditions 2 and 3: companies in link company’s group
570.This section restricts the amount of relief that can be claimed in cases involving link companies. It is based on section 406 of ICTA.
571.Subsections (1) to (3) deal with the case of the surrender of relief by a company owned by a consortium. The link company’s group, as a whole, cannot claim more relief than would have been available to the link company alone.
572.Subsections (4)> to (6) deal with the case of the surrender of relief by the link company and members of its group to a company owned by the consortium. The claimant company cannot claim relief in an amount greater than its profits that would be available to absorb relief surrendered by the link company alone.
573.Subsection (7) explains how to operate the restriction in subsection (6) if the link company and claimant company have different accounting periods. The tests in section 144 are applied in the claimant company’s accounting period.
574.Subsection (8) supplies definitions for the section.