[Part 2 The Substantial Shareholding Requirement]
Taxation of Chargeable Gains Act 1992 (1992 c 12) | Legislation

[Part 2 The Substantial Shareholding Requirement]

[The requirement

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The investing company must have held a substantial shareholding in the company invested in throughout a twelve-month period beginning not more than [six] years before the day on which the disposal takes place.

Meaning of “substantial shareholdingâ€

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(1)     For the purposes of this Schedule a company holds a “substantial shareholding†in another company if it holds shares or interests in shares in that company by virtue of which—

(a)     it holds not less than 10% of the company's ordinary share capital,

(b)     it is beneficially entitled to not less than 10% of the profits available for distribution to equity holders of the company, and

(c)     it would be beneficially entitled on a winding up to not less than 10% of the assets of the company available for distribution to equity holders.

This is without prejudice to what is meant by “substantial†where the word appears in other contexts.

[(2)     Chapter 6 of Part 5 of CTA 2010 (group relief: equity holders and profits or assets available for distribution) applies for the purposes of sub-paragraph (1) as it applies for the purposes of the provisions mentioned

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