VCM15030 - Investee companies: trading requirement

ICTA/S293 (2); ITA/S181; ITA/S290

ICTA/S576 (4); FA00/SCH15/PARA23

For all four schemes, the investee company - that is, the company issuing the shares - must fall into one of two categories. It must either exist for the purpose of carrying on a qualifying trade (see VCM15070) or it must be the parent company of a group whose business is essentially that of carrying on qualifying activities (see VCM15040).

See VCM15200 regarding the special rules applying where the company participates in a share exchange that results in the insertion of a new holding company over it.

See VCM15080 regarding the rules applying if the company goes into liquidation and VCM15090 regarding the rules applying if the company goes into receivership or administration.