Part 2 Plant and machinery allowances

F1Chapter 16ARestrictions on allowance buying

Qualifying change

212EPrincipal companies

(1)

A company (“U”) is a principal company of C if—

(a)

C is a qualifying 75% subsidiary of U, and

(b)

U is not a qualifying 75% subsidiary of another company.

(2)

A company (“V”) is a principal company of C if—

(a)

C is a qualifying 75% subsidiary of U,

(b)

U is a qualifying 75% subsidiary of V, and

(c)

V is not a qualifying 75% subsidiary of another company.

(3)

If V is a qualifying 75% subsidiary of another company (“W”), W is a principal company of C unless W is a qualifying 75% subsidiary of another company, and so on.

(4)

A company (“X”) is a principal company of C if—

(a)

C is owned by a consortium of which X is a member, or

(b)

C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,

and X is not a qualifying 75% subsidiary of another company.

(5)

A company (“Y”) is a principal company of C if—

(a)

C is owned by a consortium of which X is a member, or

(b)

C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,

and X is a qualifying 75% subsidiary of Y but Y is not a qualifying 75% subsidiary of another company.

(6)

If Y is a qualifying 75% subsidiary of another company (“Z”), Z is a principal company of C unless Z is a qualifying 75% subsidiary of another company, and so on.

(7)

A company that is a principal company of C by virtue of any of subsections (4) to (6) is a consortium principal company of C.