Paragraph 24

(1)

This paragraph applies where under an approved scheme any shares are allotted, or issued without prior allotment—

(a)

to any person by virtue of his being, or having been, a registered producer and without any consideration being provided by him,

(b)

to trustees on terms which provide for the transfer of the shares to persons by virtue of their being, or having been, registered producers, or

(c)

to the relevant board,

by a body to which sub-paragraph (2) below applies.

(2)

This sub-paragraph applies to a body which—

(a)

is a relevant successor of the relevant board, or of a subsidiary of that board, and

(b)

is not a body in relation to which the scheme makes provision for the transfer to it of anything other than shares in a subsidiary of the relevant board.

(3)

The shares shall be treated for the purposes of the enactments relating to the taxation of company distributions as if they had been issued wholly in consideration of a subscription paid to the relevant successor of an amount equal to the market value of the shares at the time of allotment or, if issued without prior allotment, at the time of issue.

(4)

In sub-paragraph (3) above, the reference to the market value of the shares is to the price which they might reasonably be expected to fetch on a sale in the open market.

(5)

Section 272(2) to (4) of the M1Taxation of Chargeable Gains Act 1992 (general principles for determining market value of shares) shall apply for the purposes of this paragraph.

(6)

Where, as at the time at which the market value of any shares falls to be determined for the purposes of this paragraph, the shares are not quoted on a recognised stock exchange, subsection (3) of section 273 of that Act (assumption with respect to information available to prospective purchaser) shall apply for the purposes of the determination as it applies for the purposes of a determination falling within subsection (1) of that section.

(7)

In sub-paragraph (6) above, “recognised stock exchange” has the meaning given by section 841 of the Income and Corporation Taxes Act 1988.

(8)

Sub-paragraphs (5) and (6) of paragraph 20 above shall apply for the purposes of this paragraph as they apply for the purposes of that.

Paragraph 24

Annotations

Marginal citations

Notes on Part I

Modifications