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 4Interpretation

Meaning of “trade"

27

In this Schedule “trade” means anything that—

a

is a trade, profession or vocation, within the meaning of the Income Tax Acts, and

b

is conducted on a commercial basis with a view to the realisation of profits.

Meaning of “twelve-month period"

28

For the purposes of this Schedule a “twelve-month period” means a period ending with the day before the first anniversary of the day with which, or in the course of which, the period began.

Meaning of “interest in shares"

29

1

References in this Schedule to an interest in shares are to an interest as a co-owner of shares.

2

It does not matter whether the shares are owned jointly or in common, or whether the interests of the co-owners are equal.

Index of defined expressions

31

In this Schedule the expressions listed below are defined or otherwise explained by the provisions indicated:

asset related to shares

paragraph 30

company

paragraph 26(1)(a)

company invested in

paragraph 1

51% subsidiary

paragraph 26(4) and (5)

group (and member of group)

paragraph 26(1)(b) and (5)

holding company

paragraph 26(3)

interest in shares

paragraph 29

investing company

paragraph 1

joint venture company

paragraph 24(1)

qualifying shareholding (in joint venture company)

paragraph 24(2)

subgroup

paragraph 26(2)

trade

paragraph 27

trading company

paragraph 20

trading group

paragraph 21

trading subgroup

paragraph 22

twelve-month period

paragraph 28