Part 9 Leasing plant or machinery

Chapter 3 Sales of lessors: leasing business carried on by a company alone

“Relevant change in relationship”

393 Qualifying 75% subsidiaries
(1) A company (“B”) is a principal company of A if—
(a) A is a qualifying 75% subsidiary of B, and
(b) B is not a qualifying 75% subsidiary of another company.
(2) There is a relevant change in the relationship between A and B (as a principal company) on any day if A ceases to be a qualifying 75% subsidiary of B on that day.
(3) A company (“C”) is a principal company of A if—
(a) A is a qualifying 75% subsidiary of B,
(b) B is a qualifying 75% subsidiary of C, and
(c) C is not a qualifying 75% subsidiary of another company.
(4) There is a relevant change in the relationship between A and C (as a principal company) on any day if—
(a) A ceases to be a qualifying 75% subsidiary of B on that day, or
(b) B ceases to be a qualifying 75% subsidiary of C on that day.
(5) If C is a qualifying 75% subsidiary of another company (“D”), D is a principal company of A unless D is a qualifying 75% subsidiary of another company, and so on.
(6) Accordingly, there is a relevant change in the relationship between A and a principal company of A on any day if—
(a) in determining which company is a principal company, regard is had to any company which is a qualifying 75% subsidiary of another, and
(b) that company ceases to be a qualifying 75% subsidiary of the other on that day.
(7) This section is supplemented by section 398 (“qualifying 75% ... subsidiary” etc).
Words in s. 393(7) omitted (with effect in accordance with s. 29(8) of the amending Act) by virtue of Finance Act 2010 (c. 13), s. 29(2)
S. 392 and cross-heading substituted (with effect in accordance with Sch. 18 para. 9 of the amending Act) by Finance Act 2010 (c. 13) , Sch. 18 para. 4