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HA 7: Shareholding requirements
or “Rules for who can own shares in a qualifying company and how shareholders are counted”
You could also call this:

“Qualifying companies must meet specific conditions from previous years”

You need to know about a rule for qualifying companies. A qualifying company must have been a qualifying company at the end of the income year before the first income year that starts on or after 1 April 2011. Also, the company must not have joined together with another company that is not a qualifying company. This joining together is called amalgamation. The rule about not joining with other companies applies from the date when the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 was approved by the Queen. This rule is called the grandparenting requirement.

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Next up: HA 8: Shareholders’ personal liability

or “When shareholders agree to be personally liable for company taxes”
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Part H Taxation of certain entities
Qualifying companies (QC)

HA 7BGrandparenting requirement

  1. A qualifying company must have been a qualifying company at the end of the income year before the first income year that starts on or after 1 April 2011 and must not have amalgamated, on or after the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 receives the Royal assent, with another company that is not a qualifying company.

Notes
  • Section HA 7B: inserted, on (applying for income years beginning on or after 1 April 2011), by section 73(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
  • Section HA 7B: amended, on , by section 75(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
  • Section HA 7B list of defined terms amalgamation: inserted, on , by section 75(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).