Material disposal (sale of gift) of shares or securities in a trading company

The disposal is ‘material’ if throughout one year prior to either the disposal of the shares or the date the company ceased to be trading: trading group least 5% of the ordinary shares and voting rights of the company) see Here  for a detailed discussion of the test; and another company in the same group (no minimum hour requirement, so full or  part-time employees or directors will be eligible)
 * the company is a trading company or the holding company of a
 * the company is the taxpayer’s ‘personal company' (ie he holds at
 * the taxpayer is an officer or employee of the company or for

The one year test is described in more detail here

The personal company test is described in more detail Here

The officer or employee test is discussed in more detail Here

For a discussion of joint venture companies and the changes made in FA 2015 see Here

There is no ‘relevant business assets’ requirement for the sale of shares / securities, therefore there is no need to prorate the relief in accordance with underlying investments held by the company.

More detailed commentary on the material disposal test can be found here Here

De minimis
There is no de minimis limit for the reduction in a shareholding that constitutes a material disposal under s 169I(2)(c)7, nor is there any de minimis limit for the reduction in a partnership share that constitutes a disposal of part of a business under s 169I(2)(a). However, where there is a disposal associated with a relevant material disposal on or after 18 March 2015, it must be associated with a significant reduction in the claimant's participation in the business in terms of his interest in the partnership's assets or his shareholding in the company (see C3.1305).