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 Entityholds a "qualifying shareholding" in a Companyif it meets the following conditions—(a) it holds an interest of at least 10% of the Ordinary Share Capitalof the Company;(b) it, or another Companyor LLPin 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 Companyhave 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
Personmaking the disposal. Amended (as from 18th June 2014)