Valid from 19/07/2006
20(1)This paragraph applies if—U.K.
(a)the qualifying change of ownership occurs on any day as a result of paragraph 11, and
(b)the change occurs by reference to a company (“company A”) ceasing to be a qualifying 75% subsidiary of another company (“company B”) on that day.
(2)There is no adjustment to the basic amount unless, on that day, company A—
(a)becomes owned by a consortium of which company B is a member, or
(b)becomes a qualifying 90% subsidiary of a company owned by a consortium of which company B is a member.
(3)In that case, the amount of the income is limited to the appropriate percentage of the basic amount.
(4)The appropriate percentage is found by subtracting the relevant fraction at the end of the day from 100%.
(5)For this purpose “the relevant fraction” is whichever is the lowest of the following percentages—
(a)the percentage of the ordinary share capital of company A that is beneficially owned by company B,
(b)the percentage to which company B is beneficially entitled of any profits available for distribution to equity holders of company A,
(c)the percentage to which company B would be beneficially entitled of any assets of company A available for distribution to its equity holders on a winding-up.
(6)In any case where company A becomes a qualifying 90% subsidiary of a company, sub-paragraph (5) is to be read as if for references to company A there were substituted references to that company.