Part 9Leasing plant or machinery
Chapter 3Sales of lessors: leasing business carried on by a company alone
F1 “Relevant change in relationship”
393Qualifying 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% F2... subsidiary” etc).
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