(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 six years prior to the sale.
A BK Ltd sold 4% of the ordinary share capital of TW Ltd on 1 June 2020. It had owned 18% of TW Ltd for many years. TW Ltd is a trading company.
The SSE will be available, as BK Ltd owned at least 10% of TW Ltd for a continuous period of 12 months in the six years prior to the sale.
B DN Ltd purchased 8% of the ordinary share capital of GX Ltd on 1 January 2019. It sold all of the shares on 15 August 2020. GX Ltd is a trading company.
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 2017. It sold 16% of the company on 1 March 2020 and then sold all of the remaining shares on 30 September 2020. LV Ltd is a trading company.
The SSE will be available. PK Ltd owned at least 10% of LV Ltd for the 12 months ended 1 March 2020. This period is within the six years prior to 30 September 2020.
(2). Statement A is true.
Statement B is true.