Paragraph 23

In this Schedule—

• “chargeable payment” has the meaning given in F1Section 214(2) of the Taxes Act 1988;

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• “exempt distribution” means a distribution which is exempt by virtue of Section 213(2) of that Act;

• “group”, F3, means a company which has one or more 75 per cent. subsidiaries together with that or those subsidiaries F4;

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• “shares” includes stock;

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In determining for the purposes of paragraphs 2 to 6 above whether a company whose shares are transferred by the distributing company is a 75 per cent. subsidiary of the distributing company there shall be disregarded any share capital of the first-mentioned company which is owned indirectly by the distributing company.

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Section 533 of the Taxes Act (meaning of connected persons) applies for the purposes of this Schedule.

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