½Û×ÓÊÓƵ

D1.1041 Substantial shareholding exemption—the first subsidiary exemption—assets related to shares

There are three subsidiary exemptions in addition to the main SSE. The first subsidiary exemption applies¹ to exempt a gain where the investing company realises a gain from the disposal of an asset related to shares. The second subsidiary exemption is discussed in D1.1042 and the third in D1.1043.

In broad terms, an asset related to shares² is an option over shares or securities (or an interest in them, or a security with rights to convert into or acquire shares (or an interest in shares), or an option over such a security. The definition is considered in more detail below.

Where the assets of a company in liquidation are vested in the liquidator under the Insolvency Act 1986, s 145 or the Insolvency Act (Northern Ireland) Order, SI 1989/2405 art 123, para 2 applies to the first subsidiary exemption as if the assets were those of the companies, and transfers to and from the company are disregarded³ (see also