Income Tax Act 2007 section 134

Qualifying trading companies

Section 134 defines what makes a company a "qualifying trading company" for the purposes of share loss relief on shares that are not linked to Enterprise Investment Scheme (EIS) relief.

• A qualifying trading company must satisfy three conditions (A, B and C) relating to its trading status, structure, assets and listing status
• On the disposal date (or within three years before it), the company must meet the trading, control and independence, qualifying subsidiaries, and property managing subsidiaries requirements
• The company must have met these requirements continuously for six years ending on the disposal date, or for a shorter period if it was not previously an excluded, investment or trading company
• At the time the shares were issued, the company must have satisfied the gross assets requirement and the unquoted status requirement