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FINANCE ACT, 1984
Relief for Investment in Corporate Trades: Subsidiaries
Finance for trade of subsidiary
1. The shares issued by the qualifying company may, instead of or as well as being issued for the purpose mentioned in subsection (1) (b) of section 12 , be issued for the purpose of raising money for a qualifying trade which is being carried on by a subsidiary or which a subsidiary intends to carry on; and where shares are so issued subsections (1) (c), (4), (5), (7) (b) and (8) of that section shall have effect as if references to the company were or, as the case may be, included references to the subsidiary.
Individuals qualifying for relief
2.—(1) In subsections (2), (4) and (6) of section 14 , references to a company (except, in each subsection, the first such reference) include references to a company which is during the relevant period a subsidiary of that company, whether it becomes a subsidiary before, during or after the year of assessment in respect of which the individual concerned claims relief and whether or not it is such a subsidiary while he is such a partner, director or employee as is mentioned in subsection (2) or while he has or is entitled to acquire such capital or voting power or rights as are mentioned in subsections (4) and (6).
(2) Without prejudice to the provisions of section 14 (as it has effect in accordance with subparagraph (1) an individual shall be treated as connected with a company if—
(a) he has at any time in the relevant period had control (within the meaning of section 158 of the Corporation Tax Act, 1976 ) of another company which has since that time and before the end of the relevant period become a subsidiary of the company; or
(b) he directly or indirectly possesses or is entitled to acquire any loan capital of a subsidiary of that company.
(3) Section 14 (5) and (8) shall apply for the purposes of this paragraph.
3.—(1) In sections 18 (1) and 20 (3) references to the receipt of value from the company shall include references to the receipt of value from any company which during the relevant period is a subsidiary of that company, whether it becomes a subsidiary before or after the individual concerned receives any value from it, and references to the company in the other provisions of sections 18 and 20 (6) shall be construed accordingly.
(2) In section 20 (1) references to the company (except the first) shall include references to a company which during the relevant period is a subsidiary of the company, whether it becomes a subsidiary before or after the redemption, repayment, repurchase or payment referred to in that subsection.
4. Subsections (4) and (5) of section 24 shall have effect in relation to any such arrangements as are mentioned in section 26 (2) (c) as they have effect in relation to any such arrangement as is mentioned in section 21 .