Finance Act 2015

Amendment of section 29 of Principal Act (persons chargeable)

36. (1) Section 29 of the Principal Act is amended—

(a) in subsection (1) by—

(i) substituting “company.” for “company;” in the definition of “security”, and

(ii) deleting “references to the disposal of assets mentioned in paragraphs (a) and (b) of subsection (3) and in subsection (6) include references to the disposal of shares deriving their value or the greater part of their value directly or indirectly from those assets, other than shares quoted on a stock exchange.”,

and

(b) by inserting the following subsection after subsection (1) —

“(1A) (a) In this subsection—

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

‘relevant assets’ means assets mentioned in—

(i) subsection (3)(a) or (b), or

(ii) subsection (6).

(b) A disposal of relevant assets, for the purpose of this section, includes the disposal of shares deriving their value or the greater part of their value directly or indirectly from those assets, other than shares quoted on a stock exchange.

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

(i) involves a transfer of money 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 22 October 2015.