Section 393 Qualifying 75% subsidiaries

United Kingdom

(1)

A company (“B”) is a principal company of A if—

(a)

A is a qualifying 75% subsidiary of B, and

(b)

B is not a qualifying 75% subsidiary of another company.

(2)

There is a relevant change in the relationship between A and B (as a principal company) on any day if A ceases to be a qualifying 75% subsidiary of B on that day.

(3)

A company (“C”) is a principal company of A if—

(a)

A is a qualifying 75% subsidiary of B,

(b)

B is a qualifying 75% subsidiary of C, and

(c)

C is not a qualifying 75% subsidiary of another company.

(4)

There is a relevant change in the relationship between A and C (as a principal company) on any day if—

(a)

A ceases to be a qualifying 75% subsidiary of B on that day, or

(b)

B ceases to be a qualifying 75% subsidiary of C on that day.

(5)

If C is a qualifying 75% subsidiary of another company (“D”), D is a principal company of A unless D is a qualifying 75% subsidiary of another company, and so on.

(6)

Accordingly, there is a relevant change in the relationship between A and a principal company of A on any day if—

(a)

in determining which company is a principal company, regard is had to any company which is a qualifying 75% subsidiary of another, and

(b)

that company ceases to be a qualifying 75% subsidiary of the other on that day.

(7)

This section is supplemented by section 398 (“qualifying 75% F1... subsidiary” etc).

Annotations

Textual amendments

F1: Words in s. 393(7) omitted (with effect in accordance with s. 29(8) of the amending Act) by virtue of Finance Act 2010 (c. 13), s. 29(2)

Notes on “Relevant change in relationship”

Textual amendments

F1: S. 392 and cross-heading substituted (with effect in accordance with Sch. 18 para. 9 of the amending Act) by Finance Act 2010 (c. 13) , Sch. 18 para. 4