Finance Act, 1996

Amendment of section 46 (debts) of Capital Gains Tax Act, 1975.

61.—(1) Section 46 of the Capital Gains Tax Act, 1975 , is hereby amended by the addition of the following subsection after subsection (6):

“(7) For the purposes of this section a debenture issued by any company shall be deemed to be a security (within the meaning assigned by paragraph 3 of Schedule 2) if it is issued—

(a) on a reorganisation (as provided for in paragraph 2 (1) of Schedule 2) or in pursuance of its allotment on any such reorganisation,

(b) in exchange for shares in or debentures of another company where the requirements of paragraph 4 (2) of Schedule 2 are satisfied in relation to the exchange,

(c) under any such arrangements as are referred to in paragraph 5 (1) of Schedule 2, or

(d) in pursuance of rights attached to any debenture falling within paragraph (a), (b) or (c).”.

(2) Subsection (1) shall apply and have effect as respects the disposal of a debenture on or after the 28th day of March, 1996.