VCM74320 | Share loss relief: individual and corporate claimants: individual claimants: type of company invested in: qualifying trading company: introduction

ITA07/S134 imposes three ‘high level’ conditions (A - C)* 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

High level condition B: subsidiary requirements in A also to be met throughout a specified period

Subsidiary requirements are alternative to one anothe

High level condition C: Upper limit on size of company issuing shares

Both subsidiary requirements must be met

*Condition D was repealed by s38(1)(a) Finance Act 2020 with effect in relation to disposals made on or after 24 January 2019.