Section 69 — Corporation Tax Act 2010: Eligibility conditions

Eligibility conditions 69 1 These are the eligibility conditions mentioned in section 68(1)(b) that a company which has subscribed for shares in a qualifying trading company must meet to be eligible for share loss relief on the disposal of the shares.

2 Condition A is that the subscribing company (“the investor”) is an investment company on the date of the disposal of the shares (“the disposal date”).

3 Condition B is that the investor has been an investment company—

a for a continuous period of 6 years ending on the disposal date, or b for a shorter continuous period ending on the disposal date and has not before the beginning of that period been a trading company or an excluded company (see section 90(1)).

4 Condition C is that the investor was not associated with, or a member of the same group as, the qualifying trading company at any time during the period—

a beginning with the date when the investor subscribed for the shares, and b ending with the disposal date.

5 For the purposes of condition C, two companies are associated with each other if—

a one controls the other, or b both are under the control of the same person or persons.

6 Sections 450 and 451 (which contain provision as to when a person is to be taken to have control of a company) apply for the purposes of subsection (5).