# Finance Act 1986, Section 97AB: Exempt capital-raising transfers


(1) There is to be no charge to tax under section 93 or 96 in respect of an exempt capital-raising transfer.
(2) For the purposes of subsection (1), a transfer of chargeable securities is an “exempt capital-raising transfer” if the transfer is in the course of capital-raising arrangements.
(3) In this section, “capital-raising arrangements” means arrangements pursuant to which chargeable securities are issued by a company for the purpose of raising new capital.
(4) A transfer of chargeable securities is not prevented from being an exempt capital-raising transfer by reason only of a delay in transferring the chargeable securities where—
(a) a person (“the transferor”) acquires the chargeable securities—
(i) before capital-raising arrangements are entered into, or
(ii) in the course of capital-raising arrangements,
(b) the transferor is subject to a restriction that has the effect of preventing the transfer of the chargeable securities in the course of the capital-raising arrangements, and
(c) the transfer is made as soon as reasonably practicable after the time at which the restriction ceases to have effect.

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Source: https://www.legislation.gov.uk/ukpga/1986/41/section/97AB (the official version)
Page: https://openlegislation.uk/finance-act-1986/section-97AB
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.