Taxation of Chargeable Gains Act 1992 section Schedule 7AC paragraph 18

Requirements relating to the investing company

Section Schedule 7AC paragraph 18 defines the "qualifying period" during which the investing company must demonstrate sufficient trading activity to satisfy the investing company requirements for the substantial shareholding exemption.

• The investing company must have been carrying on trading activities to a sufficient degree throughout the qualifying period.
• The qualifying period runs from the start of the most recent twelve-month period during which the investing company held a substantial shareholding, through to the time of disposal (or later if relevant).
• Where the investee company is treated as having been a qualifying company throughout the final twelve months ending at disposal (under modified conditions in paragraph 15A(2)(b) to (d)), the qualifying period may be adjusted accordingly.
• If the disposal is treated as occurring before the actual conveyance or transfer of the asset, the qualifying period is effectively extended to run until the date of the actual conveyance or transfer.