Finance Act, 1994

Amendment of section 27 (relief for individuals on certain reinvestment) of Finance Act, 1993.

65.Section 27 of the Finance Act, 1993 , is hereby amended—

(a) in subsection (5), by the insertion of the following proviso to that subsection:

“Provided that where the disposal of the original holding is made at any time in the period beginning on the 6th day of May, 1993, and ending on the 5th day of April, 1994, the reference in paragraph (a) to ‘ending on the date which is one year after the date of the disposal of the original holding’ shall be construed as a reference to ‘ending on the 5th day of April, 1995’.”,

and

(b) by the substitution of the following subsection for subsection (7):

“(7) (a) In this subsection ‘qualifying trading operations’, in relation to a trade, means all the operations of the trade excluding those of dealing in shares, securities, land, currencies, futures or traded options.

(b) A trade shall be a qualifying trade for the purposes of subsection (6) if, throughout the specified period—

(i) it is conducted on a commercial basis and with a view to the realisation of profits, and

(ii) it consists wholly or mainly of qualifying trading operations:

Provided that a trade which, during the specified period, consists partly of qualifying trading operations and partly of other trading operations shall be regarded for the purposes of this subsection as a trade which consists wholly or mainly of qualifying trading operations if, but only if, the total amount receivable in the specified period by the company carrying on the trade from sales made and services rendered in the course of qualifying trading operations is not less than 75 per cent. of the total amount receivable by the company from all sales made and services rendered in the course of the trade in the specified period.”.