Substantial shareholdings exemption (SSE) exempts a company from paying corporation tax when they have made a gain on the sale of shares.

As of 1 April 2017, changes to the SSE will make it easier for UK companies to dispose of subsidiaries.

In comparison to others regimes in Europe the UK was very restrictive. These changes will simplify the rules and will also now apply to institutional investors.

The simplified SSE rules will increase the attractiveness of the UK as an international holding company location. In this period of uncertainty this gives multinationals a reason to set-up or stay in the UK, as well as reducing complexity in Corporation Tax systems for UK groups.