The transfer of a business from a company to some or all of the shareholders of the company is a qualifying business transfer for the purposes of section 58 if conditions A to E are met.

Condition A is that the business is transferred as a going concern.

Condition B is that the business is transferred together with all of the assets of the business, or together with all of those assets other than cash.

Condition C is that the total market value of the qualifying assets of the business included in the transfer does not exceed £100,000.

Condition D is that all of the shareholders to whom the business is transferred are individuals.

Condition E is that each of those shareholders held shares in the company throughout the period of 12 months ending with the business transfer date.

For the purposes of condition D, the reference to individuals includes an individual acting as a member of a partnership, but does not include an individual acting as a member of a limited liability partnership.

Section 60 of TCGA 1992 (nominees and bare trustees) applies for the purposes of this section as it applies for the purposes of that Act.

In this section “market value”, in relation to an asset, means the price which the asset might reasonably be expected to fetch on a sale in the open market.