Company: BDRX
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001214659-25-007342
Chunk: 109

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-12
Form: 424B3
Chunk 109
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 ordinary and will be treated as from sources within the
United States for United States foreign tax credit purposes.

Passive Foreign Investment Company Rules

A foreign corporation is a
PFIC if either (1) 75% or more of its gross income for the taxable year is passive income or (2) the average percentage of assets held
by such corporation during the taxable year that produce passive income or that are held for the production of passive income is at least
50%. For purposes of applying the tests in the preceding sentence, the foreign corporation is deemed to own its proportionate share of
the assets, and to receive directly its proportionate share of the income, of any other corporation of which the foreign corporation owns,
directly or indirectly, at least 25% by value of the stock.

Based
upon estimates with respect to its income, assets, and operations, it is expected that we will not be a PFIC for the current taxable year.
However, because the determination of PFIC status must be made on an annual basis after the end of the taxable year and will depend on
the composition of the income and assets, as well as the nature of the activities, of our activities and those of our subsidiaries from
time to time, there can be no assurance that we will not be considered a PFIC for any taxable year.

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If
we were to be classified as a PFIC for any taxable year in which a United States holder held the Depositary Shares, various adverse United
States tax consequences could result to such United States holders, including taxation of gain on a sale or other disposition of the shares
of the corporation, Depositary Shares at ordinary income rates and imposition of an interest charge on gain or on distributions with respect
to the shares, Depositary Shares. Unless a United States holder of PFIC shares elects, in either case if eligible, to be taxed annually
on a mark-to-market basis or makes a QEF election and certain other requirements are met, gain realized on the sale or other disposition
of PFIC shares would generally not be treated as capital gain. Instead, the United States holder would be treated as if the United States
holder had realized such gain ratably over the holder’s holding period for such securities. The amounts allocated to the taxable
year of sale or other disposition and to any year before the foreign corporation became a PFIC would be taxed as ordinary income. The
amount allocated to each other taxable year would be subject to tax at the highest rate in