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Section 97ZA Clearance services: exception for replacement securities.F1F7F2

(1)

There shall be no charge to tax under section 96 above in respect of the transfer F3... of chargeable securities (“the new securities”) issued by a company in place of existing securities of the same company (“the old securities”) if the following conditions are met.

(2)

The first condition is that the old securities are held under a clearance services scheme.

(3)

The second condition is that—

(a)

there was a charge to tax under section 96 above in respect of the transfer F4...—

(i)

of the old securities, or

(ii)

of earlier securities in relation to which on a previous application of this section those securities were the new securities,

or there would have been such a charge if that section had been in force; or

(b)

there would have been such a charge but for section 97(3) F5... above.

(4)

The third condition is that there is an arrangement under which—

(a)

the new securities are transferred F6... as mentioned in section 96(1)(b), and

(b)

the old securities are cancelled.

(5)

For the purposes of subsection (2) above the cases in which securities are held under a clearance services scheme are those specified (in relation to shares) in section 97(6) above.

(6)

The exception provided by this section applies only to the extent that the value of the new securities immediately after their issue does not exceed the value of the old securities immediately before the issue of the new securities.

Annotations

Textual amendments

F1

S. 97AA inserted (with application as mentioned in s. 118(5) of the amending Act) by Finance Act 1999 (c. 16), s. 118(3) (with s. 123(4))

F2

S. 97AA renumbered as s. 97ZA (with effect in accordance with Sch. 11 para. 25 of the amending Act) by Finance Act 2024 (c. 3), Sch. 11 para. 13(1) (with Sch. 11 para. 27)

F3

Words in s. 97ZA(1) omitted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by virtue of Finance Act 2024 (c. 3), Sch. 11 para. 13(2)(b) (with Sch. 11 para. 27)

F4

Words in s. 97ZA(3)(a) omitted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by virtue of Finance Act 2024 (c. 3), Sch. 11 para. 13(2)(c)(i) (with Sch. 11 para. 27)

F5

Words in s. 97ZA(3)(b) omitted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by virtue of Finance Act 2024 (c. 3), Sch. 11 para. 13(2)(c)(ii) (with Sch. 11 para. 27)

F6

Words in s. 97ZA(4)(a) omitted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by virtue of Finance Act 2024 (c. 3), Sch. 11 para. 13(2)(d) (with Sch. 11 para. 27)

F7

Words in s. 97ZA heading substituted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by Finance Act 2024 (c. 3), Sch. 11 para. 13(2)(a) (with Sch. 11 para. 27)

Notes on Part IV

Modifications

C1

Pt. 4: construed as one with 1999 c. 16, Pt. VI (27.7.1999) by Finance Act 1999 (c. 16), s. 123(1)

C2

Pt. 4: power to restrict conferred (27.7.1999) by Finance Act 1999 (c. 16), s. 119 (with s. 123(4))

C3

Pt. 4: power to extend conferred (1.5.1995) by Finance Act 1995 (c. 4), s. 152(2)(b)(6)

C4

Pt. 4: 2019 c. 1, s. 48 construed as one with this Part (with effect in accordance with s. 48(12) of the amending Act) by Finance Act 2019 (c. 1), s. 48(11)

C5

Pt. 4: 2019 c. 1, s. 48A construed as one with this Part by 2019 c. 1, s. 48A(9) (as inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 78)

Notes on Other charges: clearance services

Textual amendments

F1

S. 96 cross-heading inserted (with effect in accordance with Sch. 11 para. 25 of the amending Act) by Finance Act 2024 (c. 3), Sch. 11 para. 11(1) (with Sch. 11 para. 27)