Part 4 Loss relief

Chapter 5 Losses on disposal of shares

Qualifying trading companies: the requirements

84 The gross assets requirement
(1) The gross assets requirement in the case of a single company is that the value of the company's gross assets—
(a) must not exceed £7 million immediately before the shares in respect of which the share loss relief is claimed are issued, and
(b) must not exceed £8 million immediately afterwards.
(2) The gross assets requirement in the case of a parent company is that the value of the group assets—
(a) must not exceed £7 million immediately before the shares in respect of which the share loss relief is claimed are issued, and
(b) must not exceed £8 million immediately afterwards.
(3) The value of the group assets means the sum of the values of the gross assets of each of the members of the group, ignoring any that consist in rights against, or shares in or securities of, another member of the group.
(4) In this section—
“group” means a parent company and its qualifying subsidiaries,
“parent company” means a company that has one or more qualifying subsidiaries,
“qualifying subsidiary” is to be read in accordance with section 191 of ITA 2007, and
“single company” means a company that does not have one or more qualifying subsidiaries.
Pt. 4 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Risk Transformation (Tax) Regulations 2017 (S.I. 2017/1271), regs. 1(1), 10
Pt. 4 excluded (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), s. 1(5)(e) (with ss. 15(1), 16(1))