Finance Act, 1995

Amendment of section 27 (relief for individuals on certain reinvestment) of Finance Act, 1993.

74.—(1) Section 27 (as amended by section 65 of the Finance Act, 1994 ) of the Finance Act, 1993 , is hereby amended—

(a) in subsection (1)—

(i) by the insertion of the following definition before the definitions of “eligible shares”, “ordinary shares” and “unquoted company”:

“‘director’ has the meaning assigned to it in Chapter III of Part V of the Income Tax Act, 1967 ;”,

(ii) by the deletion of the definitions of “full-time working officer or employee” and “personal company”,

(iii) by the insertion of the following definitions before the definition of “holding company”:

“‘full-time director’, ‘full-time employee’, ‘part-time director’ and ‘part-time employee’ have, respectively, the meanings assigned to them in section 8 of the Finance Act, 1978 ;”,

and

(iv) by the insertion of the following definitions before the definition of “trading company”:

“‘trade’ includes a profession and ‘trading company’, ‘trading group’, ‘qualifying trade’ (within the meaning of subsection (7)) and ‘qualifying trading operations’ (within the said meaning) shall be construed accordingly;”,

(b) in subsection (4), by the insertion of “and” at the end of paragraph (i), the deletion of paragraphs (ii) and (iii) and the substitution of the following paragraph for paragraph (iv):

“(iv) the re-investor has been a full-time employee, part-time employee, full-time director or part-time director of the company or, if that company is a member of a trading group, of one or more companies which are members of the trading group.”,

and

(c) in subsection (5)—

(i) by the insertion of the following paragraph after paragraph (b):

“(bb) within the specified period, the company uses the money raised through the issue of the eligible shares for the purposes of enabling it, or enlarging its capacity, to undertake qualifying trading operations (within the meaning of subsection (7)),”,

and

(ii) by the substitution, in paragraph (d), of “a full-time employee or a full-time director of the company” for “a full-time working officer or employee of the company”.

(2) Subsection (1) shall apply and have effect as respects disposals made on or after the 6th day of April, 1995.