Section 809VD Condition AF1F2C1C2
United Kingdom
A company is an “eligible trading company” if—
it is a private limited company,
it carries on one or more commercial trades or is preparing to do so within the next F55 years, and
carrying on commercial trades is all or substantially all of what it does (or of what it is reasonably expected to do once it begins trading).
A company is an “eligible stakeholder company” if—
it is a private limited company,
it exists wholly for the purpose of making investments in eligible trading companies (ignoring any minor or incidental purposes), and
it holds one or more such investments or is preparing to do so within the next F65 years.
A company is an “eligible hybrid company” if—
it is a private limited company,
it is not an eligible trading company or an eligible stakeholder company,
it carries on one or more commercial trades or is preparing to do so within the next 5 years,
it holds one or more investments in eligible trading companies or is preparing to do so within the next 5 years, and
carrying on commercial trades and making investments in eligible trading companies are all or substantially all of what it does (or of what it is reasonably expected to do once it begins operating).
The F8references in subsections (3) and (3A) to making investments is to be read in accordance with section 809VC.
A company is an “eligible holding company” if—
it is a member of an eligible trading group or of an eligible group that is reasonably expected to become an eligible trading group within the next F95 years,
an eligible trading company in the group is a 51% subsidiary of it, and
if the ordinary share capital that it owns in the eligible trading company is owned indirectly, each intermediary in the series is also a member of the group.
“Group” means a parent company and its 51% subsidiaries.
“Parent company” means a company that—
has one or more 51% subsidiaries, but
is not itself a 51% subsidiary of any company.
A group is an “eligible group” if the parent company and each of its 51% subsidiaries are private limited companies.
A group is an “eligible trading group” if—
it is an eligible group, and
carrying on commercial trades is all or substantially all of what the group does (taking the activities of its members as a whole).
The reference in subsection (5) to owning ordinary share capital indirectly is to be read in accordance with section 1155 of CTA 2010.
A company is a “private limited company” if—
it is a body corporate whose liability is limited,
it is not a limited liability partnership, and
none of its shares are listed on a recognised stock exchange.
Annotations
Textual amendments
- F1
Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)
- F2
Ss. 809VA-809VO and cross-heading inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 7
- F3
Word in s. 809VD(1)(b) omitted (with effect in accordance with s. 15(8) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), s. 15(3)(a)
- F4
S. 809VD(1)(ba) inserted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(3)(a)
- F5
Word in s. 809VD(2)(b) substituted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(3)(b)
- F6
Word in s. 809VD(3)(c) substituted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(3)(c)
- F7
S. 809VD(3A) inserted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(3)(d)
- F8
Words in s. 809VD(4) substituted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(3)(e)
- F9
Word in s. 809VD(5)(a) substituted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(3)(f)
Modifications
- C1
Ss. 809L-809Z6 applied by 2005 c. 5, s. 643I(9) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
- C2
Ss. 809L-809Z6 applied by 2005 c. 5, s. 643A(6) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
Notes on Chapter A1
Modifications
- C1
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)
- C2
Pt. 14 Ch. A1 modified by 1988 c. 1, s. 762ZB(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)
- C3
Pt. 14 Ch. A1 modified by 1992 c. 12, s. 87B(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119))
- C4
Pt. 14 Ch. A1 modified (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 19(3)
- C5
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41F(8) (as substituted (6.4.2015) by Finance Act 2014 (c. 26), Sch. 9 paras. 5, 47 (with Sch. 9 para. 48))
- C6
Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643F(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
- C7
Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643N(3)(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
- C8
Pt. 14 Ch. A1 modified (temp.) (for the tax years 2025-26, 2026-27 and 2027-28) by Finance Act 2025 (c. 8), Sch. 10 para. 18(1)(2)