Corporation Tax Act 2009

1008 Conditions relating to shares acquired

(1) Each of the following conditions must be met in relation to the shares acquired.

• Condition 1

  The shares are ordinary shares that are fully paid-up and not redeemable.

• Condition 2

  The shares are—

  (a)

  shares of a class listed on a recognised stock exchange,

  (b)

  shares in a company that is not under the control of another company, or

  (c)

  shares in a company that is under the control of a listed company.

• Condition 3

  The shares are shares in—

  (a)

  the employing company,

  (b)

  a company that, when the shares are acquired, is a parent company of the employing company,

  (c)

  a company that, when the shares are acquired, is a member of a consortium that owns the employing company,

  (d)

  a company that, when the shares are acquired, is a member of a consortium that owns a parent company of the employing company, or

  (e)

  a company within subsection (2).

(2) A company (“company A”) is within this subsection if when the shares are acquired—

(a) the employing company or a parent company of the employing company is a member of a consortium that owns another company (“company B”), and

(b) company A is—

(i) a member of that consortium or a parent company of a member of that consortium, and

(ii) a member of the same commercial association of companies as company B.