SSE

[Chanmuganathan]

Hi All

A UK company made an investment in French trading company (40% of the ordinary shares) in 2010. The investment has been sold in 2015 and the company made again of €400K. The UK company(investor) is not a trading company. Is this gain would qualify for SSE?

My understanding that the investor company also must be a trading company to qualify SSE, is there any way around?

Thanks.

Nathan

[amingram]

Hi

the SSE rules are numerous and complex......it may be possible to have SSE apply to the £400 gain, depending upon what else is in the UK company investment wise and whether or not it intends to purtchase another trading company in the near future.

Regards

Mark

www.wesram.co.uk

[Chanmuganathan]

What if that's the case?
Or dissolve immediately?

[amingram]

The SSE rules state that the investing company (ie the UK company must be either a trading company - as you said - or a member of a trading group. For SSE purposes, the meaning of trading is extending to include activities undertaken with a view to start trading (such as seeking an investment in a trading company).

Dissolving the UK company now would, I fear, not work as the UK company would never have been "trading" after the disposal.

Regards

Mark