SCHEDULE 10Sale etc of lessor companies etc
Part 2Leasing business carried on by a company alone
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).