SCHEDULES

SCHEDULE 2Qualifying asset holding companies

PART 9Disposals of overseas land and certain shares

53No chargeable gain on disposal of overseas land or certain shares

1

A gain accruing to a QAHC on a disposal of overseas land or qualifying shares is not a chargeable gain.

2

“Qualifying shares” means any shares apart from shares whose disposal would, in accordance with Part 2 of Schedule 1A to TCGA 1992 (whether asset derives at least 75% of its value from UK land), be regarded as a disposal of an asset deriving at least 75% of its value from UK land.

3

For the purposes of sub-paragraph (2), “shares” includes—

a

stock;

b

any other interest of a member in a company (including a company that has no share capital);

c

any interest as co-owner of shares (whether the shares are owned jointly or in common and whether or not the interests of the co-owners are equal);

d

rights of unit holders in unit trust schemes that are treated as if they were shares for the purposes of TCGA 1992 as a result of section 99(1) of that Act;

e

units in tax transparent funds that are treated as assets for the purposes of that Act as a result of section 103D(3) of that Act;

f

any derivative contract to the extent that the underlying subject matter of the contract is shares.

4

In this paragraph—

  • F1“derivative contract” means—

    1. a

      a derivative contract within the meaning of Part 7 of CTA 2009 (see section 576 of that Act), or

    2. b

      a contract which is not a derivative contract within the meaning of that Part only as a result of section 589(2)(b) of that Act (general exclusion of contracts whose underlying subject matter consists of shares);

  • “unit trust scheme” and “unit holder” have the meaning they have in section 99 of TCGA 1992;

  • “tax transparent fund” and “units” in relation to such a fund have the meaning they have in section 103D of that Act.