Textual Amendments
F1Pt. 7 Ch. 3 heading substituted (with effect in accordance with s. 137(2) of the amending Act) by Finance Act 1994 (c. 9), s. 137(1), Sch. 15 para. 2
Modifications etc. (not altering text)
C1Pt. 7 Ch. 3 applied (with effect in accordance with Sch. 13 para. 4(4) of the 1995 amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), Sch. 5B para. 6(4) (as inserted by Finance Act 1995 (c. 4), Sch. 13 para. 4(3))
M1(1)A qualifying company may, in the relevant period, have one or more subsidiaries if—
(a)the conditions mentioned in subsection (2) below are satisfied in respect of the subsidiary or, as the case may be, each subsidiary F2. . . ; F3. . .
(b)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)The conditions referred to are—
(a)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F5(ca)that more than 50 per cent. of the ordinary share capital of the subsidiary is owned directly or indirectly by the qualifying company;]
(d)that no person other than the qualifying company or another of its subsidiaries has control of the subsidiary within the meaning of section 840; and
(e)that no arrangements are in existence by virtue of which [F6either of the conditions in paragraphs (ca) and ](d) above [F6would] cease to be satisfied.
(3)The conditions shall not be regarded as ceasing to be satisfied by reason only of the subsidiary or [F7any other company] being wound up, or dissolved without winding up, if—
(a)F8. . . the winding up or dissolution is for bona fide commercial reasons [F9and is not] part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax; F10. . .
(b)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F11(3A)The conditions shall not be regarded as ceasing to be satisfied by reason only of anything done as a consequence of the subsidiary or any other company being in administration or receivership if—
(a)the entry into administration or receivership, and
(b)everything done as a consequence of the company concerned being in administration or receivership,
is for bona fide commercial reasons and is not part of a scheme or arrangement the main purpose of which or one of the main purposes of which is the avoidance of tax.]
(4)The conditions shall not be regarded as ceasing to be satisfied by reason only of [F12arrangements being in existence for] the disposal by the qualifying company or (as the case may be) by another subsidiary, F13. . . of all its interest in the subsidiary if F13. . . the disposal is [F14to be] for bona fide commercial reasons [F15and is not to be] part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.
(5)F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F17(5A)Section 312(1A)(b) applies to determine the relevant period for the purposes of this section.]
[F18(5B)Subsections (2) to (10) of section 838 apply for the purposes of subsection (2)(ca) above as they apply for the purposes of subsection (1) of that section.]
(6)F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2Words in s. 308(1) repealed (with effect in accordance with Sch. 18 para. 21 of the repealing Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(a), Sch. 42 Pt. 2(13), Note 6
F3S. 308(1)(b) and preceding word repealed (with effect as mentioned in Sch. 8 para. 1 of the repealing Act) by Finance Act 1997 (c. 16), Sch. 8 para. 6(a), Sch. 18 Pt. 6, Note
F4S. 308(2)(a)-(c) repealed (with effect in accordance with Sch. 18 para. 21 of the repealing Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(b)(i), Sch. 42 Pt. 2(13), Note 6
F5S. 308(2)(ca) inserted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(b)(ii)
F6Words in s. 308(2)(e) substituted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(b)(iii)
F7Words in s. 308(3) substituted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(c)
F8Words in s. 308(3)(a) repealed (with effect in accordance with Sch. 18 para. 21 of the repealing Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(d)(i), Sch. 42 Pt. 2(13), Note 6
F9Words in s. 308(3)(a) substituted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(d)(ii)
F10S. 308(3)(b) and preceding word repealed (with effect in accordance with Sch. 18 para. 21 of the repealing Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(e), Sch. 42 Pt. 2(13), Note 6
F11S. 308(3A) inserted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(f)
F12Words in s. 308(4) inserted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(g)(i)
F13Words in s. 308(4) repealed (with effect in accordance with Sch. 18 para. 21 of the repealing Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(g)(ii)(iii), Sch. 42 Pt. 2(13), Note 6
F14Words in s. 308(4) inserted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(g)(iv)
F15Words in s. 308(4) substituted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(g)(v)
F16S. 308(5) repealed (with effect in accordance with Sch. 18 para. 21 of the repealing Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(h), Sch. 42 Pt. 2(13), Note 6
F17S. 308(5A) inserted (with effect as mentioned in s. 137(1)(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 15 para. 23(a)
F18S. 308(5B) inserted (with effect in accordance with Sch. 18 para. 21 of the amending Act) by Finance Act 2004 (c. 12), Sch. 18 para. 9(i)
F19S. 308(6) repealed (with effect as mentioned in s. 137(1)(2), Sch. 26 Pt. 5(17) Note of the repealing Act) by Finance Act 1994 (c. 9), Sch. 15 para. 23(b), Sch. 26 Pt. 5(17)
Marginal Citations
M1Source-1983 Sch.5 17(1)-(10); 1986 Sch.9 18; 1987 Sch.15 15(2)