(1)For the purposes of this Part, the following form a “group”—
(a)a company that is not a 75% subsidiary of any other company, and
(b)every company that is a 75% subsidiary—
(i)of that company,
(ii)of a 75% subsidiary of that company, or
(iii)of a 75% subsidiary of a 75% subsidiary of that company, and so on.
(2)The company in a group that is not a 75% subsidiary of any other company is the “principal member” of the group.
(3)Every other member of the group is a “subsidiary member”.
(4)A company (“B”) is a “75% subsidiary” of another company (“A”) if—
(a)A is beneficially entitled to 75% or more of any profits available for distribution to equity holders of B,
(b)A would be beneficially entitled to 75% or more of any assets of B available for distribution to its equity holders on a winding-up, or
(c)at least 75% of B’s ordinary share capital is owned directly or indirectly by A.
(5)Where as a result of the application of each of paragraphs (a) to (c) of subsection (4) a company would (ignoring this paragraph) be a member of more than one group, that company is to be treated as only being a 75% subsidiary of the first company it is a subsidiary of applying the rules in those paragraphs in order (starting with paragraph (a)).
(6)If at any time a company that is a generating undertaking becomes a member of a group that is a generating undertaking (including a group that becomes a generating undertaking as a result of that company becoming a member), the final qualifying period of the company ends at that time.
(7)If at any time a group ceases to be a group as a result of the principal member becoming a 75% subsidiary of another group, the final qualifying period of the group ends at that time.