(1). For the SSE to be available the vendor company must have owned at least 10% of the company whose shares are being sold for a continuous period of 12 months in the two years prior to the sale.
A BK Ltd sold 4% of the ordinary share capital of TW Ltd on 1 June 2017. It had owned 18% of TW Ltd for many years. BK Ltd and TW Ltd are both trading companies.
The SSE will be available, as BK Ltd owned at least 10% of TW Ltd for a continuous period of 12 months in the two years prior to the sale.
B DN Ltd purchased 8% of the ordinary share capital of GX Ltd on 1 January 2016. It sold all of the shares on 15 August 2017. DN Ltd and GX Ltd are both trading companies.
The SSE will not be available as DN Ltd only owned 8% of GX Ltd.
C PK Ltd purchased 22% of LV Ltd on 1 July 2014. It sold 16% of the company on 1 March 2016 and then sold all of the remaining shares on 30 September 2017. PK Ltd and LV Ltd are both trading companies.
The SSE will be available. PK Ltd owned at least 10% of LV Ltd for the 12 months ended 1 March 2017. This period is within the two years prior to 30 September 2017.
(2). Statement A is true.
Statement B is true.