An exemption from corporation tax on chargeable gains for gains made by corporate sellers on the sale of shares, provided certain conditions are fulfilled. Broadly, the exemption applies to the disposal of shares in a trading company or holding company of a trading group or sub-group, provided that a holding of not less than 10% of the ordinary share capital has been held throughout a period of not less than 12 months beginning not more than six years before the disposal. For qualifying institutional investors, a smaller shareholding may qualify.

For further information, see Practice note, Substantial shareholding exemption.