Share loss relief: individual and corporate claimants: individual claimants: type of company invested in: qualifying trading company: introduction
ITA07/S134 imposes four ‘high level’ conditions (A - D) each of which must be met at the date of disposal of the shares in order for the company which issued the shares to be a qualifying trading company. Each of these high level conditions has two or more subsidiary requirements some or all of which must be met in order for the high level condition to be met. The following table introduces the high level conditions and their subsidiary requirements and provides links to more detailed guidance.
High level condition A: subsidiary requirements to be met at time of, or prior to, disposal of shares
All four subsidiary requirements must be met.
|The trading requirement||S137||VCM74610+|
|The control and independence requirement||S139||VCM74900+|
|The qualifying subsidiaries requirement||S140||VCM74920+|
|The property managing subsidiaries requirement||S141||VCM74950+|
High level condition B: subsidiary requirements in A also to be met throughout a specified period
Subsidiary requirements are alternative to one another
|subsidiary requirements in A to be met for continuous period of six years||S134(3)(a)||VCM75000|
|subsidiary requirements in A to be met for less than six years providing previous activities are limited||S134(3)(b)||VCM75000|