SCHEDULES

F1SCHEDULE 7ACExemptions for disposals by companies with substantial shareholding

Annotations:
Amendments (Textual)
F1

Sch. 7AC inserted (with effect in accordance with s. 44(3)(4) of the amending Act) by Finance Act 2002 (c. 23), Sch. 8 para. 1

Part 3Requirements to be met in relation to F3... company invested in

Annotations:
Amendments (Textual)
F3

Words in Sch. 7AC Pt. 3 heading omitted (with effect in accordance with s. 27(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), s. 27(2)(c)

Requirements relating to the company invested in

19

C1C21

The company invested in must—

a

have been a qualifying company throughout the period—

i

beginning with the start of the latest twelve-month period by reference to which the requirement of paragraph 7 (the substantial shareholding requirement) is met, and

ii

ending with the time of the disposal, and

b

F4in a case where sub-paragraph 1A) applies, be a qualifying company immediately after the time of the disposal.

F51A

This sub-paragraph applies where—

a

the disposal is a disposal to a person connected with the investing company, or

b

the requirement in paragraph 7 is met by virtue of paragraph 15A.

2

For this purpose a “qualifying company” means a trading company or the holding company of a trading group or a trading subgroup.

F22A

If the conditions in paragraph 15A(2)(b) to (d) are met, sub-paragraph (2B) applies for the purpose of determining whether the requirement of sub-paragraph (1)(a) is satisfied.

2B

The company invested in is to be treated as having been a trading company at any time during the final 12 month period when the asset was used as mentioned in paragraph 15A(2)(d) (if it was not a trading company at that time).

2C

“The final 12 month period” has the meaning given in paragraph 15A(4).

3

If the disposal is by virtue of section 28(1) or (2) (asset disposed of under contract) treated as made at a time before the asset is conveyed or transferred, the requirements in sub-paragraph (1)(a) and (b) must also be complied with as they would have effect if the references there to the time of the disposal were to the time of the conveyance or transfer.

F64

Section 1122 of CTA 2010 (meaning of “connected” persons) applies for the purposes of sub-paragraph (1A)(a).