Section 393 — Corporation Tax Act 2010: Qualifying 75% subsidiaries

Qualifying 75% subsidiaries 393 1 A company (“B”) is a principal company of A if—

a A is a qualifying 75% subsidiary of B, and b B is not a qualifying 75% subsidiary of another company.

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

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

a A is a qualifying 75% subsidiary of B, b B is a qualifying 75% subsidiary of C, and c C is not a qualifying 75% subsidiary of another company.

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

a A ceases to be a qualifying 75% subsidiary of B on that day, or b B ceases to be a qualifying 75% subsidiary of C on that day.

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

6 Accordingly, there is a relevant change in the relationship between A and a principal company of 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 section is supplemented by section 398 (“qualifying 75% ... subsidiary” etc).