A company will qualify for this exemption if the following requirements are satisfied:
- Approved stock exchange
The shares you have in the holding company must be of a class listed on any stock market of a stock exchange approved in regulation 152I, Schedule 12 of the Regulations. See Appendix 1: Approved stock exchanges for more information.
- Designated a general insurance company
The holding company is included in a class of companies designated as engaged in the carrying on of general insurance business on either:
- an approved stock exchange, or
- an approved international sectoral classification system.
See Appendix 3: Approved international sectoral classification systems for more information.
- Trading requirement
The class of shares you have in the holding company must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange.
- Subsidiaries principally engaged in general insurance business
If the holding company has only one wholly owned subsidiary, that subsidiary must be authorised under the law of its place of residence to carry on general insurance business, and be principally engaged in the active carrying on of general insurance business.
If the holding company has more than one wholly owned subsidiary, the principal activities of the wholly owned subsidiaries in the group, considered together, must be the active carrying on of general insurance business. At least one of the wholly owned subsidiaries must be authorised under the law of its place of residence to carry on general insurance business. [section 509A]
Exemption for an interest in a foreign company engaged in certain activities connected with real property
You can qualify for this exemption if you have an interest consisting of shares in a publicly listed company principally engaged in certain types of activities connected with real property. [section 511] The following requirements must be satisfied:
- Approved stock exchange
You hold shares in the company of a class listed on any stock market of a stock exchange approved in regulation 152I, Schedule 12 of the Regulations. See Appendix 1: Approved stock exchanges for more information.
- Trading requirement
The class of shares you hold in the foreign company must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange during the period in which the exemption applies. [section 511]
- A foreign company principally engaged in real property activities
The foreign company must be principally engaged in actively carrying on one or more activities connected with real property.
The specified activities are:
- construction
- development of real property through capital improvement
- receipt of rental income from commercial real property owned by the foreign company where the management, maintenance and security services for the commercial property are principally provided by directors or employees of the foreign company or by a wholly owned subsidiary that is principally engaged in providing those services through its directors and employees
- provision of management services in respect of real property through directors or employees of the foreign company
- acting as agent in connection with the sale or purchase of commercial real property. [subparagraph 511(b)(ii)]