• Part 12: Part 12: Participation Exemptions

    • Article 71 - Policy Statement on Participation Exemptions

      Capital gains and dividends in respect of qualifying shareholdings are exempt from tax under these Regulations.

    • Article 72 - Participation Exemption on Investment in Shares

      (1) Subject to Article 73, the gain arising on the disposal of a qualifying shareholding shall be exempt from tax, and any loss arising on the disposal shall not be available for relief under Part 5.
      (2) A QFC Entity holds a "qualifying shareholding" in a Company if it meets the following conditions—
      (a) it holds an interest of at least 10% of the Ordinary Share Capital of the Company;
      (b) it, or another Company or LLP in the same Group, has held the interest mentioned in Article 72(2)(a) for a continuous period of at least 6 months immediately preceding the date of disposal; and
      (c) the shares in the Company have not been held wholly or mainly with a view to resale.
      Amended (as from 18th June 2014)

    • Article 73 - Interaction between Article 42 and Article 72

      (1) The exemption conferred by Article 72 shall not apply to a disposal that by virtue of Article 42(1) is deemed to be for a consideration of such amount as would secure that neither a gain nor a loss would accrue to the Person making the disposal.
      Amended (as from 18th June 2014)