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Consortium claims for group relief |
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1 | Chapter 4 of Part 5 of CTA 2010 (claims for group relief) is amended as |
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Ability to claim group relief where link company established in the EEA |
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2 | In section 129 (overview of Chapter), in subsection (2), for “Sections 130 to |
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134” substitute “Sections 130 to 134A”. |
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3 | In section 130(2) (group relief claims on amounts surrenderable under |
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Chapter 2), in Requirement 3— |
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(a) | in paragraph (c), for “section 133(1), (3) and (4)” substitute “section |
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133(1) and (3) to (8)”, and |
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(b) | in paragraph (d), for “section 133(2), (3) and (4)” substitute “section |
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4 (1) | Section 133 (conditions to be met for consortium claims for group relief) is |
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(a) | omit the “and” at the end of paragraph (e), and |
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(b) | for paragraph (f) substitute— |
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“(f) | the surrendering company and the claimant company |
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(g) | the link company is UK related or established in the |
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(a) | omit the “and” at the end of paragraph (e), and |
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(b) | for paragraph (f) substitute— |
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“(f) | the surrendering company and the claimant company |
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(g) | the link company is UK related or established in the |
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(4) | After subsection (4) insert— |
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“(5) | Subsection (6) applies where the link company— |
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(a) | is established in the EEA, but |
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(6) | Neither consortium condition 2 nor consortium condition 3 is met |
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unless the link company is a member of the same group of |
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companies as the other company mentioned in subsection (1)(d) or |
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(2)(d) without the involvement of a relevant company. |
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(7) | A “relevant company” is a company that is not established in the |
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(8) | For the purposes of subsection (6) a company (“A”) is a member of |
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the same group of companies as another company (“B”) without the |
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involvement of a relevant company if— |
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(a) | in a case where A is the 75% subsidiary of B, B owns at least |
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75% of A’s ordinary share capital otherwise than through a |
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(b) | in a case where B is the 75% subsidiary of A, A owns at least |
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75% of B’s ordinary share capital otherwise than through a |
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(c) | in a case where neither company is the 75% subsidiary of the |
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other but both are 75% subsidiaries of a third company, the |
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(i) | is not a relevant company, and |
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(ii) | owns at least 75% of A’s ordinary share capital, and at |
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least 75% of B’s ordinary share capital, otherwise than |
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through a relevant company.” |
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5 | After section 134 (meaning of “UK related” company) insert— |
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“134A | Companies “established in the EEA” |
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(1) | For the purposes of section 133 a company is established in the EEA |
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(a) | it is constituted under the law of the United Kingdom or an |
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(b) | it has its registered office, central administration or principal |
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place of business within the European Economic Area. |
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(2) | In this section “EEA territory”, in relation to any time, means a |
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territory outside the United Kingdom that is within the European |
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Economic Area at that time.” |
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6 (1) | Section 146 (maximum amount of group relief in consortium claims) is |
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(a) | omit the “and” at the end of paragraph (a), and |
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(b) | after that paragraph insert— |
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“(aa) | assuming that the link company was UK related, |
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(3) | In subsection (6), at the end insert “, assuming that the link company was UK |
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(a) | omit the “and” at the end of the definition of “consortium claim”, and |
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(b) | at the end insert “, and |
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“UK related”, in relation to a company, has the meaning |
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Limitations on group relief based on proportion of voting power held by company |
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7 (1) | Section 143 (which makes provision limiting the amount of group relief that |
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is available in cases where the surrendering company is owned by a |
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consortium) is amended as follows. |
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(a) | omit the “and” at the end of paragraph (b), and |
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(b) | at the end of paragraph (c) insert “, and |
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(d) | the proportion of the voting power in the |
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surrendering company that is directly possessed by |
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(3) | In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to |
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8 (1) | Section 144 (which makes provision limiting the amount of group relief that |
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is available in cases where the claimant company is owned by a consortium) |
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(a) | omit the “and” at the end of paragraph (b), and |
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(b) | at the end of paragraph (c) insert “, and |
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(d) | the proportion of the voting power in the claimant |
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company that is directly possessed by the |
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(3) | In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to |
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Limitations on group relief where arrangements preventing control are in place |
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9 | After section 146 insert— |
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“146A | Conditions 1 and 2: surrendering company not controlled by claimant |
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(1) | This section applies if— |
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(a) | the claimant company makes a claim for group relief based |
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on consortium condition 1, |
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(b) | it is the surrendering company that is owned by the |
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(c) | during any part of the overlapping period, arrangements |
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within subsection (3) are in place which enable a person to |
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prevent the claimant company, either alone or together with |
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one or more other companies that are members of the |
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consortium, from controlling the surrendering company. |
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(2) | This section also applies if— |
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(a) | the claimant company makes a claim for group relief based |
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on consortium condition 2, and |
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(b) | during any part of the overlapping period, arrangements |
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within subsection (3) are in place which enable a person to |
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prevent the link company, either alone or together with one |
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or more other companies that are members of the |
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consortium, from controlling the surrendering company. |
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(3) | Arrangements are within this subsection if— |
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(a) | the company, either alone or together with one or more other |
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companies that are members of the consortium, would |
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control the surrendering company, but for the existence of |
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(b) | the arrangements form part of a scheme the main purpose, or |
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one of the main purposes, of which is to enable the claimant |
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company to obtain a tax advantage under this Chapter. |
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(4) | The group relief to be given on the claim is to be determined as if the |
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surrenderable amount for the overlapping period were 50% of what |
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it would be but for this section (see section 139(2) to determine the |
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surrenderable amount for the overlapping period). |
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(5) | In this section “the overlapping period” is to be read in accordance |
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(6) | Section 1139 (“tax advantage”) applies for the purposes of this |
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146B | Conditions 1 and 3: claimant company not controlled by surrendering |
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(1) | This section applies if— |
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(a) | the claimant company makes a claim for group relief based |
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on consortium condition 1, |
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(b) | it is the claimant company that is owned by the consortium, |
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(c) | during any part of the overlapping period, arrangements |
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within subsection (3) are in place which enable a person to |
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prevent the surrendering company, either alone or together |
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with one or more other companies that are members of the |
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consortium, from controlling the claimant company. |
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(2) | This section also applies if— |
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(a) | the claimant company makes a claim for group relief based |
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on consortium condition 3, and |
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(b) | during any part of the overlapping period, arrangements |
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within subsection (3) are in place which enable a person to |
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prevent the link company, either alone or together with one |
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or more other companies that are members of the |
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consortium, from controlling the claimant company. |
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(3) | Arrangements are within this subsection if— |
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(a) | the company, either alone or together with one or more other |
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companies that are members of the consortium, would |
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control the claimant company, but for the existence of the |
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(b) | the arrangements form part of a scheme the main purpose, or |
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one of the main purposes, of which is to enable the claimant |
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company to obtain a tax advantage under this Chapter. |
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(4) | The group relief to be given on the claim is to be determined as if the |
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claimant company’s total profits for the overlapping period were |
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50% of what they would be but for this section (see section 140(2) to |
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determine the total profits for the overlapping period). |
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(5) | In this section “the overlapping period” is to be read in accordance |
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(6) | Section 1139 (“tax advantage”) applies for the purposes of this |
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10 | The amendments made by this Schedule have effect in relation to accounting |
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periods beginning on or after 12 July 2010. |
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First-year allowances for zero-emission goods vehicles |
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1 | CAA 2001 is amended as follows. |
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2 | In section 39 (first-year allowances available for certain types of qualifying |
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expenditure only), at the appropriate place in the list insert— |
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| | expenditure on zero-emission goods vehicles,”. |
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3 | After section 45D insert— |
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“45DA | Expenditure on zero-emission goods vehicles |
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(1) | Expenditure is first-year qualifying expenditure if— |
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(a) | it is incurred in the period of 5 years beginning with the |
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(b) | it is incurred on the provision of a zero-emission goods |
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(c) | the vehicle is unused and not second-hand, |
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(d) | the vehicle is registered, and |
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(e) | the expenditure is not excluded by section 46 (general |
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(2) | For the purposes of subsection (1)(d) it does not matter whether the |
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vehicle is first registered before or after the expenditure is incurred. |
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“goods vehicle” means a mechanically propelled road vehicle |
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which is of a design primarily suited for the conveyance of |
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goods or burden of any description; |
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“the relevant date” means— |
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(a) | in the case of expenditure incurred by a person within |
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the charge to corporation tax, 1 April 2010, and |
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(b) | in the case of expenditure incurred by a person within |
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the charge to income tax, 6 April 2010; |
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“zero-emission goods vehicle” means a goods vehicle which |
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cannot in any circumstances emit CO2 by being driven. |
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(4) | The Treasury may by order amend this Chapter so as to provide for |
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specified descriptions of vehicles to be treated, or not to be treated, |
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as goods vehicles for the purposes of this section. |
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(5) | This section is subject to section 45DB. |
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