Amendment of section 598 (disposals of business or farm on “retirement”) of Principal Act.
58.— (1) Section 598 of the Principal Act is amended by inserting the following after subsection (7):
“(7A) (a) In this subsection ‘relevant payment’ means a payment made by a company on the redemption, repayment or purchase of its own shares which, by virtue of section 176, is not treated as a distribution for the purposes of Chapter 2 of Part 6.
(b) Subsection (2) shall apply where an individual disposes of shares in his or her family company and receives a relevant payment in exchange for that disposal.”.
(2) This section applies to disposals made on or after 4 February 2010.
