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Finance Act 2006

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This is the original version (as it was originally enacted).

Qualifying 75% subsidiaries

11(1)A company (“company B”) is a principal company of company A if—

(a)company A is a qualifying 75% subsidiary of company B, and

(b)company B is not a qualifying 75% subsidiary of another company.

(2)There is a relevant change in the relationship between company A and company B (as a principal company) on any day if company A ceases to be a qualifying 75% subsidiary of company B on that day.

(3)A company (“company C”) is a principal company of company A if—

(a)company A is a qualifying 75% subsidiary of company B,

(b)company B is a qualifying 75% subsidiary of company C, and

(c)company C is not a qualifying 75% subsidiary of another company.

(4)There is a relevant change in the relationship between company A and company C (as a principal company) on any day if—

(a)company A ceases to be a qualifying 75% subsidiary of company B on that day, or

(b)company B ceases to be a qualifying 75% subsidiary of company C on that day.

(5)If company C is a qualifying 75% subsidiary of another company (“company D”), company D is a principal company of company A unless company D is a qualifying 75% subsidiary of another company, and so on.

(6)Accordingly, there is a relevant change in the relationship between company A and a principal company of company A on any day if—

(a)in determining which company is a principal company, regard is had to any company which is a qualifying 75% subsidiary of another, and

(b)that company ceases to be a qualifying 75% subsidiary of the other on that day.

(7)This paragraph is supplemented by paragraph 15 (meaning of a qualifying 75% subsidiary).

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