Company: BDRX
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001214659-25-005742
Chunk: 47

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-04-11
Form: 20-F
Item: Item 18
Chunk 47
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 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 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 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 or
holding period, whichever is shorter. With certain exceptions, a foreign corporation is treated as a PFIC with respect to a shareholder
(or warrant holder, as applicable) if the corporation was a PFIC with respect to such holder at any time during the holder’s holding
period of the foreign corporation’s stock or warrants. Dividends paid to with respect to shares of a PFIC are not eligible for the
special tax rates applicable to qualified dividend income of certain non-corporate holders. Instead, such dividend income is taxable at
rates applicable to ordinary income.

If
we were to be treated as a PFIC, the tax consequences described above could be avoided by a “mark-to-market” election with
respect to the Depositary Shares. A United States holder making a “mark-to-market” election (assuming the requirements