835AAK Interpretation (Chapter 4)

Summary

This section sets out how an interest group is formed and conditions relating to the formation of such a group.

Details

(1) Subject to subsection (2), an interest group is made up of all companies within the charge to corporation tax, that are members of the same worldwide group or members of a group of companies as defined by section 411, where such companies have elected to be in the interest group.

(2) Where a company, branch or agency, or any activities of a company, branch or agency fall within two interest groups, that company, branch, or agency must elect to be a member of one interest group only.

(3) The election to be a member of an interest group under this section will last for a period of at least three years from the beginning of the accounting period to which the election relates, or if later, the date on which the company became a member of the same worldwide group or section 411 group. It must be communicated on the form made available by the Revenue Commissioners, and by the specified return date for the accounting period.

(4) Where a company makes an election under subsection (1), and the period of three years has lapsed, the election to be a member of a group in subsection (1) can be withdrawn. The withdrawal will apply for a period of at least three years the beginning of the accounting period in respect of which the withdrawal is made. It must be communicated on the form made available by the Revenue Commissioners, and by the specified return date for the accounting period to which the withdrawal first relates.

Relevant Date: Finance Act 2021