The UK’s substantial shareholdings exemption (SSE) applies, in certain circumstances, to exempt gains arising on the disposal of shares by corporate shareholders. Following a government consultation last summer, draft legislation has been published for inclusion in Finance Bill 2017 proposing certain reforms to the regime. The reforms, which apply to disposals undertaken on or after 1 April 2017, should be welcomed by taxpayers as they generally simplify the existing regime and also extend relief to disposals by companies held by certain institutional investors.