From the UEFA website with my addition in italics for explanation
The UEFA Champions League title-holder is guaranteed a place in the group
stage even if it does not qualify for the competition through its domestic
championship.
a) If the title-holder comes from an association entitled to more than one
place in the UEFA Champions League and qualifies for the UEFA Cup
through its domestic competitions, the lowest-ranked club of the
associationās UEFA Champions League representatives is automatically
transferred to the UEFA Cup. In this case, the number of places to which
the title-holder's national association is entitled in the UEFA Champions
League and the UEFA Cup does not change.
(So if we finish 4th and the Chavs finish 5th but win the CL we would go into the Europa)
b) If the title-holder comes from an association entitled to more than one
place in the UEFA Champions League and does not qualify for the UEFA
Champions League or UEFA Cup through its domestic competitions, the
lowest-ranked club of the associationās UEFA Champions League
representatives is automatically transferred to the UEFA Cup. In this
case, the national association of the title-holder is entitled to one
additional place in the UEFA Cup.
(So if we finish 4th and the chavs finish 8th but win the CL we would go into the Europa and there would be a further Europa place for England)
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