VCM13140 | EIS: income tax relief: the issuing company: property managing subsidiaries requirement

ITA07/S188

FA04 introduced a requirement that if the company has a subsidiary whose business consists wholly or mainly of holding or managing land or property deriving its value from land, that subsidiary (termed a ‘property managing subsidiary’) must be a qualifying 90% subsidiary of the company.

References in the legislation to property deriving its value from land include:

• any shareholding in a company deriving its value directly or indirectly from land

• any interest in settled property deriving its value directly or indirectly from land

• any option, consent or embargo affecting the disposition of land

For the definition of ‘qualifying 90% subsidiary’ see VCM13080.