[F1[F2403C Amount of relief in consortium cases.U.K.
(1)In the case of a consortium claim the amount that may be set off against the total profits of the claimant company is limited by this section.
(2)Where the claimant company is a member of the consortium, the amount that may be set off against the total profits of that company for the overlapping period is limited to the relevant fraction of the surrenderable amount.
That fraction is whichever is the lowest in that period of the following percentages—
(a)the percentage of the ordinary share capital of the surrendering company that is beneficially owned by the claimant company;
(b)the percentage to which the claimant company is beneficially entitled of any profits available for distribution to equity holders of the surrendering company; and
(c)the percentage to which the claimant company would be beneficially entitled of any assets of the surrendering company available for distribution to its equity holders on a winding-up.
If any of those percentages have fluctuated in that period, the average percentage over the period shall be taken.
(3)Where the surrendering company is a member of the consortium, the amount that may be set off against the total profits of the claimant company for the overlapping period is limited to the relevant fraction of the claimant company’s total profits for the overlapping period.
That fraction is whichever is the lowest in that period of the following percentages—
(a)the percentage of the ordinary share capital of the claimant company that is beneficially owned by the surrendering company;
(b)the percentage to which the surrendering company is beneficially entitled of any profits available for distribution to equity holders of the claimant company; and
(c)the percentage to which the surrendering company would be beneficially entitled of any assets of the claimant company available for distribution to its equity holders on a winding-up.
If any of those percentages have fluctuated in that period, the average percentage over the period shall be taken.
(4)In any case where the claimant or surrendering company is a subsidiary of a holding company which is owned by a consortium, for the references in subsection (2) or (3) above to the claimant or surrendering company there shall be substituted references to the holding company.
(5)Expressions used in this section and in section 403A have the same meanings in this section as in that section.
(6)Schedule 18 has effect for supplementing this section.]]
Textual Amendments
F1Ss. 403A-403C inserted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 7 para. 2
F2S. 403C substituted (retrospectively) by Finance Act 2000 (c. 17), s. 100(1)(5)