Paragraph 21

United Kingdom

(1)

But paragraph 20 does not prevent the reliefs being available in either of the following cases.

(2)

The first case is where—

(a)

at the time that the rights were acquired BH (or all of the connected bond-holders) did not know and had no reason to suspect that the acquisition enabled the exercise of the right of management and control of the bond assets to the exclusion of other bond-holders, and

(b)

as soon as reasonably practicable after BH (or any of the bond-holders) becomes aware that the acquisition enables that exercise, BH transfers (or some or all of the bond-holders transfer) sufficient rights for that no longer to be possible.

(3)

The second case is where BH—

(a)

underwrites a public offer of rights under the bond, and

(b)

does not exercise the right of management and control of the bond assets.

(4)

In this paragraph—

“connected” is to be read in accordance with F1section 1122 of CTA 2010, and
“underwrite”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.

Annotations

Textual amendments

F1: Words in Sch. 61 para. 21(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 724(3) (with Sch. 2)