28 Substantial shareholding exemption: institutional investors
Finance (No 2) Act 2017 (2017 c 32) | Legislation

28  Substantial shareholding exemption: institutional investors

(1)     Schedule 7AC to TCGA 1992 (exemptions for disposals by companies with substantial shareholding) is amended as follows.

(2)     After paragraph 3 insert—

“Subsidiary exemption: qualifying institutional investors

3A

(1)     This paragraph applies in relation to a gain or loss accruing to a company (“the investing company”) on a disposal of shares or an interest in shares in another company (“the company invested in”).

(2)     This paragraph applies if—

(a)     the requirement in paragraph 7 is met (substantial shareholder requirement),

(b)     the requirement in paragraph 19 is not met (requirement relating to company invested in), and

(c)     the investing company is not a disqualified listed company.

(3)     If, immediately before the disposal, 80% or more of the ordinary share capital of the investing company is owned by qualifying institutional investors, no chargeable gain or loss accrues on the disposal.

(4)     If, immediately before the disposal, at least 25% but less than 80% of the ordinary share capital of the investing company is owned by qualifying institutional investors, the amount of the chargeable gain or loss accruing on the disposal is reduced by the percentage of the ordinary share capital of the investing

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