Section 143 | Condition 1: surrendering company owned by consortium

(1)This section applies if—

(a)the claimant company makes a claim for group relief based on consortium condition 1, and

(b)it is the surrendering company that is owned by the consortium.

(2)The group relief to be given on the claim is limited to the ownership proportion of the surrenderable amount for the overlapping period (see section 139(2) to determine the surrenderable amount for the overlapping period).

(3)The ownership proportion is the same as the lowest of the following proportions—

(a)the proportion of the ordinary share capital of the surrendering company that is beneficially owned by the claimant company,

(b)the proportion of any profits available for distribution to equity holders of the surrendering company to which the claimant company is beneficially entitled (see Chapter 6), ...^F1

(c)the proportion of any assets of the surrendering company available for distribution to such equity holders on a winding up to which the claimant company would be beneficially entitled (see Chapter 6) , and^F2

(d)the proportion of the voting power in the surrendering company that is directly possessed by the claimant company.^F2

(4)For the purposes of subsection (3)—

(a)the proportions mentioned in paragraphs (a) to (d) of that subsection are those prevailing during the overlapping period, and^F3

(b)if any of those proportions changes during that period, use the average of that proportion during that period.

(5)If the surrendering company is owned by the consortium as a result of section 153(3) (consortiums involving holding companies), references in subsection (3) to the surrendering company are to be read as references to the holding company in question.

(6)In this section “the overlapping period” is to be read in accordance with section 142.