SCHEDULES
F2SCHEDULE 7ZAF1Business asset disposal relief: “trading company” and “trading group”
Words in Act substituted (with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 3 paras. 7(2)(a), 8 (with Sch. 3 para. 7(3))
PART 3Partnerships
Profits and assets test
20
1
The fraction of a company's ordinary share capital that is owned indirectly by company DIC is calculated—
a
by applying sections 1156 and 1157 of CTA 2010, as read with section 1155 of that Act, and
b
on the assumptions specified in sub-paragraph (2).
2
The assumptions are—
a
where company DIC directly owns more than 50% of the ordinary share capital of a company, company DIC is taken to own the whole of the ordinary share capital of that company;
b
where a company other than company DIC (“company B”) directly owns more than 50% of the ordinary share capital of another company (“company C”) which is a member of a group of companies of which company DIC is a member, company B is taken to own the whole of the ordinary share capital of company C.
Sch. 7ZA inserted (with effect in accordance with Sch. 13 para. 6(1) of the amending Act) by Finance Act 2016 (c. 24), Sch. 13 para. 5