Income Tax Act 2007 section 143

The unquoted status requirement

Section 143 sets out the requirement that a company must be unquoted at the time the relevant shares are issued in order for a claim to share loss relief to succeed, and specifies that no arrangements must exist to change that status.

• At the time the shares are issued, the company must be an unquoted company with no existing arrangements to become quoted or listed.
• There must be no arrangements for the company to become a subsidiary of another company through a share exchange where that new parent company is set to cease being unquoted.
• Arrangements that only lead to a future listing on a stock exchange recognised by a later order, or on an exchange designated by a later order, are disregarded and do not breach the requirement.
• "Arrangements" is broadly defined to include any scheme, agreement or understanding, whether or not it is legally enforceable.