Section 257FF Value received: receipts of insignificant valueF1

(1)

Section 257FE(2) does not apply if the receipt of value is a receipt of insignificant value.

This is subject to subsection (2).

(2)

If—

(a)

value is received (“the relevant receipt”) by the investor from the issuing company at any time in period A relating to the relevant shares,

(b)

the investor has received from the issuing company one or more receipts of insignificant value at a time or times—

(i)

during that period, but

(ii)

not later than the time of the relevant receipt, and

(c)

the total value of the receipts within paragraphs (a) and (b) is not an amount of insignificant value,

the investor is treated for the purposes of this Chapter as if the relevant receipt had been a receipt of an amount of value equal to that total amount.

(3)

A receipt does not fall within subsection (2)(b) if it has previously formed part of a total amount falling within subsection (2)(c).

Annotations

Textual amendments

F1: Pt. 5A inserted (17.7.2012) (with effect in accordance with Sch. 6 para. 24(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 6 para. 1

Notes on Part 5A

Modifications

C1: Pt. 5A applied by Taxation of Chargeable Gains Act 1992 (c. 12), Sch. 5BB para. 8(4) (as inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 6 para. 5)