SCHEDULES

SCHEDULE 10Sale etc of lessor companies etc

Part 2Leasing business carried on by a company alone

Meaning of “associated company”

9

1

A company is an “associated company” of another company on any day if, at the start of that day,—

a

one of the two has control of the other, or

b

both are under the control of the same person or persons,

and for this purpose “control” is to be read in accordance with section 416 of ICTA.

2

If, at the start of any day, a company (“the consortium company”) is owned by a consortium or is a qualifying 90% subsidiary of a company owned by a consortium, references to an associated company of the consortium company on that day include—

a

any relevant member of the consortium on that day, and

b

any company which is an associated company of any relevant member of the consortium on that day.

3

For this purpose a member of the consortium is a “relevant” member on any day if—

a

it is a member of the consortium at the start of the day,

b

one or more qualifying changes of ownership occur in relation to the consortium company on that day, and

c

any of those changes occur in a case where the member of the consortium is regarded as “company E” for the purposes of paragraph 12 (consortium relationships).

4

This paragraph applies for the purposes of this Part of this Schedule.