Income Tax Act 2007 Schedule 2 para 75

The relevant company to carry on the relevant qualifying activity requirement

Schedule 2 paragraph 75 sets out transitional rules that modify the requirement for the relevant company to carry on the relevant qualifying activity (section 294) when determining whether shares or securities form part of a company's qualifying holdings, depending on when the shares or securities were issued.

• For shares or securities issued before 6 April 2007, section 294 is applied with modifications: "relevant qualifying activity" becomes "qualifying activity," "section 293" becomes "section 291," and subsection (7) is removed.
• For shares or securities issued before 17 March 2004, section 294 is replaced entirely with a bespoke version that focuses on whether the business group's activities consist wholly or mainly of non-qualifying activities.
• Under the pre-17 March 2004 replacement rule, where the relevant company is a parent company, at least one of several conditions must be met relating to the trading company's compliance with section 290(1)(a), the treatment of incidental activities, or the status of qualifying 90% subsidiaries.
• Key defined terms — including "the business of the group," "incidental purposes," "non-qualifying activities," and "the trader company" — take their meanings from section 290 and the related qualifying activity provisions.