Finance Act 2009

Qualifying holding companies: treatment during [F1 three years before 1 July 2012] U.K.

Textual Amendments

F1 Word in Sch. 16 para. 17 substituted (21.7.2009 retrospective) by Finance Act 2011 (c. 11), Sch. 12 paras. 9(5), 14(1)

17 (1) In its application in relation to a relevant accounting period of a qualifying holding company, Part 2 of Schedule 25 to ICTA has effect subject to the modifications in this paragraph. U.K.

(2) Sub-paragraph (4) or (4A) of paragraph 6 applies to a company only if—

(a) the condition specified in that sub-paragraph is met, and

(b) conditions A and B are met.

(3) Condition A is that at all material times the company was a member of a group with the same ultimate corporate parent.

(4) For this purpose the following times are “material”—

(a) the beginning of 9 December 2008, and

(b) all times during the accounting period in question.

(5) Condition B is that amount X does not exceed amount Y.

(6) Amount X is the amount of the company's gross income in the accounting period in question that is non-qualifying gross income.

(7) Amount Y is (subject to sub-paragraph (8))—

(a) where there are three reference periods in relation to the company, the greatest of the amounts of the company's non-qualifying gross income in each of those periods,

(b) where there are two reference periods in relation to the company, the greater of the amounts of the company's non-qualifying gross income in each of those periods,

(c) where there is one reference period in relation to the company, the amount of the company's non-qualifying gross income in that period, or

(d) where there is no reference period in relation to the company, the amount of the company's non-qualifying gross income in the period of 12 months ending with 9 December 2008.

(8) Where the number of days in the period by reference to which amount X is determined is not the same as the number of days in the period by reference to which amount Y is determined, amount Y is to be multiplied by—

where—

DX is the number of days in the period by reference to which amount X is determined, and

DY is the number of days in the period by reference to which amount Y is determined.

(9) In this paragraph—

• “non-qualifying gross income” means gross income that does not satisfy the test in paragraph 6(3), (4) or (4A) of Schedule 25 to ICTA;

• “a reference period”, in relation to a company, means an accounting period of the company that—

  (a)

  is one of the last three accounting periods of the company to end before 9 December 2008, and

  (b)

  is an accounting period in relation to which the company is an exempt holding company.