[F113ZA Interpretation of section 13(7)U.K.
(1)In determining for the purposes of section 13(7) whether one body corporate is a 51 per cent subsidiary of another, that other shall be treated as not being the owner of any share capital—
(a)which it owns indirectly, and
(b)which is owned directly by a body corporate for which a profit on the sale of the shares would be a trading receipt.
(2)Notwithstanding that at any time a company (“the subsidiary company”) is a 51 per cent subsidiary of another company (“the parent company”) it shall not be treated at that time as such a subsidiary for the purposes of section 13(7) unless, additionally, at that time—
(a)the parent company would be beneficially entitled to more than 50 per cent of any profits available for distribution to equity holders of the subsidiary company, and
(b)the parent company would be beneficially entitled to more than 50 per cent of any assets of the subsidiary company available for distribution to its equity holders on a winding-up.
(3)For the purposes of section 13(7) and this section—
(a)“trading or holding company” means a trading company or a company the business of which consists wholly or mainly in the holding of shares or securities of trading companies that are its 90 per cent subsidiaries;
(b)“trading company” means a company whose business consists wholly or mainly of the carrying on of a trade or trades;
(c)a company is owned by a consortium if 75 per cent or more of the ordinary share capital of the company is beneficially owned between them by companies of which none—
(i)beneficially owns less than 5 per cent of that capital,
(ii)would be beneficially entitled to less than 5 per cent of any profits available for distribution to equity holders of the company, or
(iii)would be beneficially entitled to less than 5 per cent of any assets of the company available for distribution to its equity holders on a winding up,
and those companies are called the members of the consortium.
(4)Schedule 18 (equity holders and assets etc. available for distribution) applies for the purposes of subsections (2) and (3)(c) above as it applies for the purposes of section 413(7).]
Textual Amendments
F1S. 13ZA inserted (with application in accordance with s. 86(6) of the amending Act) by Finance Act 2001 (c. 9), s. 86(5)