At least 80% (for accounting periods beginning before 6 April 2019, 70%) by value of the company's investments must be represented throughout the accounting period by qualifying holdings of shares and securities (see E3.245)1.
For accounting periods ending on or after 6 April 2011 at least 70% by value of the qualifying holdings must be represented by eligible shares2.
| Term | Commentary |
| Eligible shares | Eligible shares are share capital in a company that do not carry any3:
– present or future preferential right to dividends
– present or future preferential rights to the company's assets in a winding up
– present or future rights to redemption |
| Preferential rights | Broadly, shares carry preferential rights if dividends are payable based on a decision by the company, shareholder or any other person. In Foojit4 the dates on which dividends became payable depended on a decision by the company and therefore the shares conferred a preferential right to dividends.
Certain types of preference share are not precluded from |
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