Section 393 | Qualifying 75% subsidiaries

(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).