{
  "url": "https://openlegislation.uk/finance-no-2-act-1997/schedule-1/paragraph-2",
  "json_url": "https://openlegislation.uk/finance-no-2-act-1997/schedule-1/paragraph-2.json",
  "legislation": "ukpga/1997/58",
  "legislation_title": "Finance (No. 2) Act 1997",
  "legislation_url": "https://openlegislation.uk/finance-no-2-act-1997",
  "path": "schedule/1/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": null,
  "text": "(1) Subject to paragraph 4 below, the value in profit-making terms of the disposal made on the occasion of a company’s flotation is the amount produced by multiplying the average annual profit for the company’s initial period by the applicable price-to-earnings ratio.\n(2) For the purposes of this paragraph the average annual profit for a company’s initial period is the amount produced by the following formula—\nA=365×PDWhere—\nA is the average annual profit for the company’s initial period;\nP is the amount, ascertained in accordance with paragraph 5 below, of the total profits for the company’s initial period; and\nD is the number of days in the company’s initial period.\n(3) For the purposes of this paragraph the applicable price-to-earnings ratio is 9.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1997/58/schedule/1/paragraph/2",
    "retrieved_at": "2026-10-29T09:23:52.893398+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}