Taxation of Chargeable Gains Act 1992 Schedule A1 paragraph 6

Companies which are qualifying companies

Schedule A1 paragraph 6 sets out the conditions that a company must meet in order to be treated as a qualifying company for the purposes of the taper relief provisions in Schedule A1.

• A qualifying company must be a trading company or the holding company of a trading group, and it must not be listed on a recognised stock exchange.
• The company must have gross assets that do not exceed the specified threshold at the relevant time, ensuring that only smaller companies benefit from the qualifying company status.
• If the company is a member of a group, the gross assets test is applied to the group as a whole rather than to the individual company in isolation.
• These conditions must be satisfied at the time of the relevant share subscription or acquisition, and changes in status after that point may affect the availability of taper relief.