# Finance Act 1994, Paragraph 10


In section 164L—
(a) after subsection (10) there is inserted—
“(10A) For the purposes of this Chapter, where—
(a) a person has acquired any eligible shares in a qualifying company (“the acquired holding”) for a consideration which is treated as reduced under this Chapter by any amount (“the held-over gain”), and
(b) after that acquisition, he acquires eligible shares in a relevant company,
he shall not be regarded in relation to his acquisition of those shares in the relevant company as acquiring a qualifying investment for the purposes of section 164A.
(10B) For the purposes of subsection (10A) above a company is a relevant company if—
(a) where that person has disposed of any of the acquired holding, it is the company in which the acquired holding has subsisted or a company which was a member of the same group of companies as that company at any time since the acquisition of the acquired holding,
(b) it is a company in relation to the disposal of any shares in which there has been a claim under this Chapter such that, without that or an equivalent claim, there would have been no held-over gain in relation to the acquired holding, or
(c) it is a company which, at the time of the disposal or acquisition to which the claim relates, was a member of the same group of companies as a company falling within paragraph (b) above”, and
(b) in subsection (11), for the definition of “chargeable business assets” there is substituted—
““chargeable business asset”, in relation to any company, means a chargeable asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of a trade, profession, vocation, office or employment carried on by—
(a) the individual acquiring the shares,
(b) any personal company of that individual,
(c) a member of a trading group of which the holding company is a personal company of that individual, or
(d) a partnership of which that individual is a member”.

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Source: https://www.legislation.gov.uk/ukpga/1994/9/schedule/11/paragraph/10 (the official version)
Page: https://openlegislation.uk/finance-act-1994/schedule-11/paragraph-10
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.