Paragraph 14

United Kingdom

(1)

For the purposes of section 13AB and this Schedule a company and all its 51% subsidiaries form a group, and if any of those subsidiaries have 51% subsidiaries the group includes them and their 51% subsidiaries, and so on.

(2)

The question whether a company is a 51% subsidiary shall be determined in accordance with section 838, subject to the following provisions.

(3)

A company (“company A”) shall be treated for the purposes of this Schedule as if it were a 51% subsidiary of another company (“company B”) if company B has rights to, or in fact receives, more than 50% of the distributions made by company A.

(4)

For the purposes of this paragraph a company shall be treated as not being the owner—

(a)

of any share capital that it owns directly if a profit on the sale of the shares would be treated as a trading receipt of its trade, or

(b)

of any share capital that it owns indirectly and that is owned directly by a body corporate for which a profit on the sale of the shares would be treated as a trading receipt of its trade.

Notes on Schedule A2

Textual amendments

F1: Sch. A2 repealed (with effect in accordance with s. 26(8)-(11) of the repealing Act) by Finance Act 2006 (c. 25), s. 26(2), Sch. 26 Pt. 3(1), Note
F2: Sch. A2 inserted (with effect in accordance with s. 28(4)(5) of the amending Act) by Finance Act 2004 (c. 12), s. 28(2)(6), Sch. 3