Group income election | Practical Law

Group income election | Practical Law

Group income election

Group income election

Practical Law UK Glossary 9-107-6669 (Approx. 2 pages)

Glossary

Group income election.

An obsolete term. A holding company and its subsidiaries used to be able to jointly elect for interest and certain other payments (such as royalties) to be paid gross within the group without deducting tax at source. The Finance Act 2001 introduced a new exemption for the payment of such interest and other payments, for example, royalties, paid to companies within the charge to UK corporation tax and abolished these elections.