Section 257R Disposal of whole or part of the investmentF1

(1)

This section applies if—

(a)

the investor disposes of the whole or part of the investment,

(b)

the disposal takes place before the shorter applicable period ends,

(c)

SI relief is attributable to the shares, or qualifying debt investments, disposed of,

(d)

the disposal is not to an individual who—

(i)

is the spouse, or civil partner, of the investor, and

(ii)

is living together with the investor at the time of the disposal, and

(e)

the disposal does not occur as a result of the investor's death.

(2)

If the disposal is not made by way of a bargain at arm's length, the SI relief attributable to those shares, or qualifying debt investments, must be withdrawn.

(3)

If the disposal is made by way of a bargain at arm's length, the SI relief attributable to those shares or qualifying debt investments must—

(a)

if it is greater than the amount given by the formula set out in subsection (4), be reduced by that amount, and

(b)

in any other case, be withdrawn.

(4)

The formula is—

C \times R

where—

C is the amount or value of the consideration received by the investor for the shares or qualifying debt investments, and

R is the SI rate for the tax year for which the SI relief was given.

Annotations

Textual amendments

F1: Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1