Paragraph 12 Certain shares no longer eligible for 100% relief

United Kingdom

(1)

In section 105 (relevant business property), in subsection (1)—

(a)

“(aa)
any unquoted shares that are traded on a recognised stock exchange;
(ab)
any unquoted securities of a company that are traded on a recognised stock exchange;”,

(b)

in paragraph (ab) (as inserted by this sub-paragraph)—

(i)

the words from “that” to the end become sub-paragraph (i), and

(ii)

after that sub-paragraph insert

“, and
(ii)
which (either by themselves or together with any unquoted shares in, or other unquoted securities of, the company that are owned by the transferor) gave the transferor control of the company immediately before the transfer;”,

(c)

after paragraph (ab) (as inserted by this sub-paragraph) insert—

“(ac)
any unquoted shares that are traded on an exchange outside the United Kingdom that is not a recognised stock exchange;
(ad)
any unquoted securities of a company—
(i)
that are traded on an exchange outside the United Kingdom that is not a recognised stock exchange, and
(ii)
which (either by themselves or together with any unquoted shares in, or other unquoted securities of, the company that are owned by the transferor) gave the transferor control of the company immediately before the transfer;”,

(d)

in paragraph (b), at the beginning insert “any other”, and

(e)

in paragraph (bb), after “any” insert “other”.

(2)

In section 107, in subsection (4) for “105(1)(bb)” substitute “105(1)(aa) or (bb)”.

(3)

In that subsection (as amended by sub-paragraph (2)) after “105(1)(aa)”, insert “, (ac)”.

(4)

In section 113A, in subsection (3A)(b), for “paragraph (b) or” substitute “any of paragraphs (aa) to”.

(5)

In Chapter 3 of Part 6 (valuation)—

(a)

in section 178 (sale of shares from deceased’s estate), in subsection (2)—

(i)

omit “or dealing on the Unlisted Securities Market”, and

(ii)

omit “or dealt in”,

(b)

in section 180 (effect of purchasing qualifying investments), in subsection (3) omit “or separately dealt in on the Unlisted Securities Market”, and

(c)

in section 186B (suspended investments), in subsection (1) omit “or dealing on the Unlisted Securities Market”.

(6)

In section 272(1)—

(a)

in the definition of “quoted”—

(i)

omit “or dealt in on the Unlisted Securities Market”, and

(ii)

for “neither so listed nor so dealt in” substitute “not so listed”, and

(b)

at the appropriate place insert—

““recognised stock exchange” has the meaning it has in the Income Tax Acts (see subsection (1) of section 1005 of the Income Tax Act 2007), and subsection (3) of that section (meaning of “listed” on a recognised stock exchange) applies for the purposes of this Act as it applies for the purposes of the Income Tax Acts;”.

(7)

In consequence of the amendments made by sub-paragraph (1), in Schedule 20 to FA 1986, in paragraph 8(1A)(a), for “paragraph (b), (bb) or” substitute “any of paragraphs (aa) to”.