The relief is available to companies who are looking to dispose of a substantial shareholding. From 1 April 2002, any gains made by a company on the disposal of a substantial shareholding will be exempt from tax, provided certain conditions are met.
We can help you to plan any disposal in the future to ensure that the full use of the relief can be obtained. The relief applies to the following:
- Trading companies or members of a group
- At least 10% of the ordinary share capital (substantial shareholding) must be disposed
- Substantial shareholding must be held for at least a 12 month period beginning not more than 2 years prior to the disposal