Finance Act 2005

Amendment of section 626B (exemption from tax in the case of gains on certain disposals of shares) of Principal Act.

54.—(1) Section 626B of the Principal Act is amended—

(a) in subsection (1)(a) by deleting the definition of “relevant time”,

(b) in subsection (1)(b)(i) by substituting “5 per cent” for “10 per cent” in clauses (I), (II) and (III), and

(c) in subsection (2) by substituting the following for paragraph (a):

“(a) the disposal by the investor company is at a time—

(i) when the investor company is a parent company of the investee company, or

(ii) within the 2 year period beginning on the most recent day on which the investor company was a parent company of the investee company,”.

(2) Subsection (1) applies as on and from 2 February 2004.