Company: BDRX
Filing Date: 2025-05-01
Form Type: DRS
Source: 0001214659-25-006756
Chunk: 134

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-01
Form: DRS
Chunk 134
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 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.

| 73 |

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.

If we were to be
classified as a PFIC for any taxable year in which a U.S. holder held the Depositary Shares, various adverse United States tax consequences
could result to such U.S. 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 U.S. holder of PFIC shares elects, in either case if eligible, to be taxed annually on a mark-to-market basis or makes
a “qualified electing fund,” or 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 U.S. holder would be treated as if the U.S. 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 effect for such year, together with an interest charge in respect of
the tax attributable to each such year. Similar rules apply to the extent any distribution in respect of PFIC shares exceeds 125% of the
average annual distribution on such PFIC securities received by the shareholder during the preceding three years