Finance Act, 1997

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Amendment of Chapter VIII (taxation of acquisition by a company of its own shares) of Part I of Finance Act, 1991 .

39.—(1) Chapter VIII of Part I of the Finance Act, 1991 , is hereby amended—

(a) in section 59—

(i) in subsection (1)—

(I) by the insertion, after the meaning assigned to “control” of the following definition:

“‘group’ means a company which has one or more 51 per cent. subsidiaries together with those subsidiaries;”,

and

(II) in the definition of “trading group” by the deletion of the words after “trades”,

and

(ii) in subsection (3), by the substitution for “section 61” of “section 60A or 61”,

and

(b) by the insertion, after section 60, of the following section:

“Purchase of own shares by a quoted company.

60A.—(1) Notwithstanding any provision of Part IX of the Act of 1976, references in the Tax Acts to distributions of a company shall be construed so as not to include references to a payment made by a quoted company on the redemption, repayment or purchase of its own shares.

(2) References in subsection (1) to a quoted company shall include references to a company which is a member of a group of which a quoted company is a member.”.

(2) This section shall have effect as respects payments made on or after the 26th day of March, 1997.