Part 14Income tax liability: miscellaneous rules
C1C2C3C4C5F1Chapter A1Remittance basis
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)
Pt. 14 Ch. A1 modified by 1988 c. 1, s. 762ZB(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)
Pt. 14 Ch. A1 modified by 1992 c. 12, s. 87B(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119))
Pt. 14 Ch. A1 modified (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 19(3)
F2Business investment relief
Ss. 809VA-809VO and cross-heading inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 7
809VDCondition A
1
Condition A is that the target company is—
a
an eligible trading company,
b
an eligible stakeholder company, or
c
an eligible holding company.
2
A company is an “eligible trading company” if—
a
it is a private limited company,
b
it carries on one or more commercial trades or is preparing to do so within the next 2 years, and
c
carrying on commercial trades is all or substantially all of what it does (or of what it is reasonably expected to do once it begins trading).
3
A company is an “eligible stakeholder company” if—
a
it is a private limited company,
b
it exists wholly for the purpose of making investments in eligible trading companies (ignoring any minor or incidental purposes), and
c
it holds one or more such investments or is preparing to do so within the next 2 years.
4
The reference in subsection (3) to making investments is to be read in accordance with section 809VC.
5
A company is an “eligible holding company” if—
a
it is a member of an eligible trading group or of an eligible group that is reasonably expected to become an eligible trading group within the next 2 years,
b
an eligible trading company in the group is a 51% subsidiary of it, and
c
if the ordinary share capital that it owns in the eligible trading company is owned indirectly, each intermediary in the series is also a member of the group.
6
“Group” means a parent company and its 51% subsidiaries.
7
“Parent company” means a company that—
a
has one or more 51% subsidiaries, but
b
is not itself a 51% subsidiary of any company.
8
A group is an “eligible group” if the parent company and each of its 51% subsidiaries are private limited companies.
9
A group is an “eligible trading group” if—
a
it is an eligible group, and
b
carrying on commercial trades is all or substantially all of what the group does (taking the activities of its members as a whole).
10
The reference in subsection (5) to owning ordinary share capital indirectly is to be read in accordance with section 1155 of CTA 2010.
11
A company is a “private limited company” if—
a
it is a body corporate whose liability is limited,
b
it is not a limited liability partnership, and
c
none of its shares are listed on a recognised stock exchange.
Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)