Corporation Tax Act 2010 section 1163

Basic meaning of "holding in a company"

Section 1163 defines what is meant by a "holding in a company" and when such a holding is considered to be "enlarged", for the purposes of the investment trust conditions.

• A "holding in a company" means any shares in or securities of that company, regardless of type or class.
• This definition applies specifically in the context of condition E for investment trust status, which restricts how much of an investment trust's holdings can be concentrated in any single company.
• A holding is treated as being "enlarged" whenever an investment trust acquires additional shares in or securities of a company in which it already has a holding, thereby increasing its overall investment in that company.
• The definition is deliberately broad, capturing all forms of shares and securities so that the investment concentration rules cannot be circumvented by holding different classes of instrument in the same company.