Consultation outcome

Reform of the substantial shareholdings exemption

This consultation has concluded

Download the full outcome

Reform of the substantial shareholdings exemption: response to the consultation

Detail of outcome

This document summarises the responses submitted to the consultation and outlines the government’s response.

The government will legislate in Finance Bill 2017 to simplify the regime, remove the investor requirement and provide a more comprehensive exemption for companies owned by qualifying institutional investors. The changes will take effect from April 2017.

Original consultation

Summary

A consultation considering possible reform of the substantial shareholdings exemption, with a view to increasing its simplicity, coherence and international competitiveness.

This consultation ran from
to

Consultation description

At Budget 2016, the government announced that it would consult on possible reform of the substantial shareholdings exemption, with a view to considering whether there could be changes to make it simpler, more coherent and more internationally competitive.

In line with that announcement, this consultation sets out a number of options for possible reform, ranging from technical changes to the existing SSE legislation to a more comprehensive corporation tax exemption for gains on substantial share disposals that corresponds with regimes in place in other countries.

The consultation considers the impact of these reforms and the potential benefits for the UK economy.

It also considers the potential risks associated with reform and how these risks could be adequately be protected against.

Documents

Reform of the substantial shareholdings exemption: consultation

Published 26 May 2016
Last updated 5 December 2016 + show all updates
  1. Consultation response published.
  2. First published.