Company: NCNA
Filing Date: 2025-04-24
Form Type: F-1
Source: 0001193125-25-092131
Chunk: 81

Company: NuCana plc
Filing Date: 2025-04-24
Form: F-1
Chunk 81
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 the United States will be classified as a PFIC in a particular taxable year if either (i) 75% or
more of the corporation’s gross income for the taxable year is passive income, or (ii) on average at least 50% of the value of the corporation’s assets produce passive income or are held for the production of passive income. Passive
income for this purpose generally includes, among other things, certain dividends, interest, royalties, rents (other than royalties and rents derived in the active conduct of a trade or business and not derived from a related person) and gains from
commodities and securities transactions and from the sale or exchange of property that gives rise to passive income.

In making this
determination, we will be treated as earning our proportionate share of any income and owning our proportionate share of any assets of any corporation in which we hold a 25% or greater interest (by value). Because PFIC status must be determined
annually based on tests which are factual in nature, our PFIC status will depend on our income, assets and activities each year, including whether certain research and development tax credits received from the government of the United Kingdom will
constitute gross income, and, if they do, whether they will constitute passive income for purposes of the PFIC income test. In addition, for purposes of the PFIC asset test, the value of our assets will depend in part on the market price of our
ordinary shares, which may fluctuate significantly. If we are classified as a PFIC for any taxable year, a U.S. Holder may be able to mitigate some of the resulting adverse U.S. federal income tax consequences described below with respect to owning
the ADSs, provided that such U.S. Holder is eligible to make, and validly makes a “mark-to-market” election, described below. In certain circumstances a U.S.
Holder owning ADSs or Pre-Funded Warrants can make a “qualified electing fund” election to mitigate some of the adverse tax consequences described with respect to an ownership interest in a PFIC by
including in income its share of the PFIC’s income on a current basis. We intend to provide the information necessary for a U.S. investor to make a qualified electing fund or election, or QEF Election with respect to us. A U.S. Holder can make
a QEF Election in the first taxable year that the entity is treated as a PFIC with respect to the U.S. Holder. A U