Illustration - SSE
In this lesson, you'll learn how the Substantial Shareholding Exemption (SSE) applies to share disposals, and why the timing and size of your shareholding matter for corporation tax purposes.
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In this lesson
- 0:00 Substantial Shareholding Exemption Overview
- 0:38 SSE Criteria and First Disposal Analysis
- 1:11 Applying SSE to Second Disposal
- 1:51 Six-Year Lookback Rule Explained
About this lesson
Using a practical illustration with Zenith Limited's disposals of Harmony Limited shares, you'll see how SSE can exempt gains from tax—but only when specific conditions are met. The key takeaway: don't just check the current shareholding percentage; you must also look back six years to see if the 10% threshold was ever met for more than 12 months. This technique is essential for SBR and applies to real-world scenarios where companies dispose of trading company shares at different times.
Duration: 2m
Transcript
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