Regulation 5

For the purposes of these Regulations or, as the case may be, the Schedule hereto, “A” to “H” shall be identified by reference to the circumstances obtaining in relation to each 1983 holding held by a company immediately before 1st April 1985 as follows—

(a)

A is the number of qualifying securities in the 1983 holding.

(b)

B is the amount of the unindexed pool of expenditure (within the meaning of paragraph 6 of Schedule 6) attributable to the 1983 holding.

(c)

C is the amount of the indexed pool of expenditure attributable to the 1983 holding, computed on the assumption that an operative event within the meaning of paragraph 7(3) of Schedule 6 occurred immediately before 1st April 1985.

(d)

D is the aggregate of—

(i)

A; and

(ii)

the number of securities which are of the same class as those to which paragraph (a) above refers, but which, because the conditions of paragraph 3(3)(b) of Schedule 6 are not fulfilled, do not form part of the 1983 holding.

(e)

E is the aggregate of—

(i)

B; and

(ii)

the relevant allowable expenditure in relation to a disposal immediately before 1st April 1985 of the whole of the securities to which paragraph (d)(ii) above refers.

(f)

F is the aggregate of the relevant allowable expenditure in relation to all disposals by the company made after March 1982 and before April 1985 of securities which are of the same class as those to which paragraph (a) above refers and which were acquired after 6th April 1965.

(g)

G is—

(i)

the number of securities of that same class which were held by the company immediately before 1st April 1982 and which comprise a holding within the meaning of Part II of Schedule 13 to the Finance Act 1982^f1; or

(ii)

where on or after 1st April 1982 there has been a reorganisation of share capital within the meaning of section 77(1) of the Capital Gains Tax Act 1979, the number of shares which (on the assumption that there had been no part disposal of original shares within the meaning of the provisions of that subsection) would comprise a new holding within the meaning of that section.

(h)

H is the amount which would be the aggregate of the relevant allowable expenditure in relation to a disposal by the company immediately before 1st April 1985 of the whole of the securities to which paragraph (g) above refers.

Annotations

Footnotes

f1: Part II of Schedule 13 was modified by Part II of Schedule 19 to the Finance Act 1985 (c. 54).