Commentary on Sections Overview Part 3: Qualifying companies Paragraph 11: Meaning of “qualifying subsidiary”
3478.This paragraph derives from paragraph 15 of Schedule 14 to FA 2000.
3479.This paragraph sets out the conditions that must be met if a company is to be a qualifying subsidiary of the company that controls it. The parent company cannot have ownership of less than 75% of a subsidiary.
3480.Sub-paragraph (3) extends the reference to “holding company” in sub-paragraph (2). See Change 174 in Annex 1.
3481.The paragraph also sets out how this requirement applies to particular circumstances such as when a subsidiary company is being wound up.