Section 1110O.

Class tests

Gross Assets Test

1.

(1) The gross assets test is calculated by dividing the gross assets the subject of a transaction by the gross assets of the traded PLC entering into the transaction.

(2) The gross assets of the traded PLC means the total non-current assets, plus the total current assets, of the traded PLC.

(3) For -

(a) an acquisition of an interest in an undertaking which will result in consolidation of the gross assets of that undertaking in the financial statements of the traded PLC, or

(b) a disposal of an interest in an undertaking which will result in the assets of that undertaking no longer being consolidated in the financial statements of the traded PLC,

the gross assets the subject of the transaction means the value of 100% of that undertaking's assets irrespective of what interest is acquired or disposed of.

(4) For an acquisition or disposal of an interest in an undertaking which does not fall within paragraph (3), the gross assets the subject of the transaction means -

(a) for an acquisition, the consideration together with liabilities assumed, if any, and