Solicitors Qualifying Examination (SQE) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Which of the following is NOT a condition for applying Business relief to a trading company?

The company must be unquoted

The shares must be owned for at least 2 years

The company must be incorporated outside the UK

The condition that is not necessary for applying Business Relief to a trading company is that the company must be incorporated outside the UK. In fact, for Business Relief to apply, the company typically must be a trading company, but it doesn't need to be incorporated outside the UK; UK companies can qualify as well.

The other conditions listed are important for Business Relief: companies must be unquoted to qualify, shares generally need to be owned for at least 2 years to benefit from the relief, and the owner must have voting control to ensure that they have a significant influence over the company's operations. Thus, being incorporated outside the UK does not align with the requirements for claiming this relief, making it the correct choice for the question.

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The owner must have voting control

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