Finance Act 2017

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

27. (1) Section 626B of the Principal Act is amended by inserting the following after subsection (3A):

“(3B) (a) In this subsection—

‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions;

‘relevant assets’ means the assets specified in subsection (3)(d).

(b) In calculating the portion of the value of shares attributable directly or indirectly to relevant assets, account shall not be taken of any arrangement that—

(i) involves a transfer of money or other assets (apart from relevant assets) from a person connected with the company in which those shares are held,

(ii) is made before a disposal of relevant assets, and

(iii) the main purpose or one of the main purposes of which is the avoidance of tax.”.

(2) This section applies to disposals made on or after 19 October 2017.