Part 4Loss relief

Chapter 6Losses on disposal of shares

Qualifying trading companies: the requirements

143The unquoted status requirement

1

The unquoted status requirement is that, at the time (“the relevant time”) at which the shares in respect of which the share loss relief is claimed are issued—

a

the company must be an unquoted company,

b

there must be no arrangements in existence for the company to cease to be an unquoted company, and

c

there must be no arrangements in existence for the company to become a subsidiary of another company (“the new company”) by virtue of an exchange of shares, or shares and securities, if—

i

section 145 applies in relation to the exchange, and

ii

arrangements have been made with a view to the new company ceasing to be an unquoted company.

2

The arrangements referred to in subsection (1)(b) and (c)(ii) do not include arrangements in consequence of which any shares, stocks, debentures or other securities of the company or the new company are at any subsequent time—

a

listed on a stock exchange that is a recognised stock exchange by virtue of an order made under section F11005(1)(b), or

b

listed on an exchange, or dealt in by any means, designated by an order made for the purposes of section 184(3)(b) or (c),

if the order was made after the relevant time.

3

In this section—

  • “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable, and

  • “unquoted company” has the meaning given by section 184(2).