Corporation Tax Act 2010 section 90

Interpretation of Chapter

Section 90 defines the key terms used throughout Chapter 5, which deals with losses on disposal of shares, and sets out important qualifications and exceptions to those definitions.

• The section defines core concepts including "bonus shares", "trading company", "trading group", "excluded company", "investment company", "holding company" and "group", each of which must be understood to determine whether share loss relief is available.
• "Shares" for the purposes of this Chapter includes stock but excludes shares or stock that do not form part of a company's ordinary share capital, although this exclusion is itself disapplied in certain specific contexts such as the definition of "excluded company".
• Companies that deal mainly in land, commodities, financial instruments, or shares, or that do not trade on a commercial basis, or that are building societies, registered societies, or holding companies of non-trading groups, are all classified as "excluded companies" and are outside the scope of relief.
• For the purposes of the Chapter, the date on which a share disposal takes place is the date on which the disposal is made or treated as made for corporation tax on chargeable gains purposes under the Taxation of Chargeable Gains Act 1992.