393Qualifying 75% subsidiariesU.K.
(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% F1... subsidiary” etc).
Textual Amendments
F1Words 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)