Income Tax Act 2007 Schedule 2 paragraph 46

The unquoted status requirement

Schedule 2 paragraph 46 sets out transitional modifications to the unquoted status requirement under section 143 for shares issued before 7 March 2001, including how the relevant period is defined and how certain shares issued between April 1998 and March 2001 are treated.

• For shares issued before 7 March 2001, the company must have been unquoted throughout a "relevant period" running from incorporation (or one year before the share issue, if later) until the date of disposal.
• A company that was unquoted when the shares were issued does not lose that status merely because its securities later became listed or dealt in on a market designated after the shares were issued.
• Shares issued after 5 April 1998 but before 7 March 2001 are treated as issued on or after 7 March 2001 for any part of the relevant period falling on or after that date — and shares in that window carrying EIS relief or Schedule 5B TCGA 1992 relief immediately before 7 March 2001 are likewise treated as issued on or after that date.
• The unquoted status requirement under section 143 does not apply at all to shares issued before 6 April 1998.