Exemptions and reliefs: exemptions: growth market shares - recognised growth markets - how to qualify as a recognised growth market
- A market must be a recognised stock exchange and meet one of two conditions:
- a majority of companies trading on that market are companies with market capitalisations of less than £170million in the qualifying period (see STSM041300);
- HMRC is satisfied that the market’s rules require companies seeking admission to demonstrate at least 20% compounded annual growth in gross revenue or employment over the last three periods of account preceding admission (see STSM041310).
A list of recognised stock exchanges can be seen at HM Revenue & Customs: recognised stock exchanges. Tables 1 and 2 show which exchanges are recognised stock exchanges.
A list of recognised growth markets can be viewed at STSM041330.
For example, AIM is a sub-market of the London Stock Exchange and therefore meets the definition of a recognised stock exchange. It is also a recognised growth market.