Commentary

C3.1321 Investors' relief—types of shares

Capital gains tax
Capital gains tax | Commentary

C3.1321 Investors' relief—types of shares

Capital gains tax | Commentary

C3.1321 Investors' relief—types of shares

In order to determine whether investors' relief applies it is necessary to establish whether the shares disposed of are qualifying shares, potentially qualifying shares, or excluded shares. The way in which the differing types of shares affect the calculations of the relief is explained in C3.1324 and C3.1325.

Qualifying shares

A share is a qualifying share if1:

  1.  

    (a)     it was subscribed for by the person making the disposal (the investor)

  2.  

    (b)     the investor has held it continuously for the period beginning with its issue and ending with the disposal

  3.  

    (c)     it was issued on or after 17 March 2016

  4.  

    (d)     at the time it was issued, none of the shares or securities of the company were listed on a recognised stock exchange (see A1.159).

  5.  

    (e)     it was an ordinary share2 (see A1.155) when issued and immediately before the disposal

  6.  

    (f)     the company was a trading company or the holding company of a trading group (see below) when the share was issued and has been so throughout the period from the date of issue of the share to the investor to the time immediately before the disposal

  7.  

    (g)     at no time in the period mentioned in (f) was the investor, or a connected person3 (see C2.110), a relevant employee (see C3.1323) in respect of that company, and

  8.  

    (h)     the period beginning with

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