Section 98 Effect of alterations of capital, etc
Where there is at any time—
an alteration in so much of a close company’s share or loan capital as does not consist of F1quoted shares or quoted securities
an alteration in any rights attaching to F2unquoted shares in or unquoted debentures of a close company,
the alteration shall be treated as having been made by a disposition made at that time by the participators, whether or not it would fall to be so treated apart from this section, and shall not be taken to have affected the value immediately before that time of the F3unquoted shares or unquoted debentures.
In this section “alteration” includes extinguishment.
The disposition referred to in subsection (1) above shall be taken to be one which is not a potentially exempt transfer
Annotations
Textual amendments
- F1
Finance Act 1987 Sch. 8 para. 2(a),with effect from 17March 1987.Originally
“shares or securities quoted on a recognised stock exchange”.
- F2
Finance Act 1987 Sch. 8 para. 2(b),with effect from 17March 1987.Originally
“shares in or debentures of a close company which are not so quoted”.
- F3
Finance Act 1987 Sch. 8 para. 2(c),with effect from 17March 1987.Originally
“shares or debentures not so quoted”.
- F4
Finance Act 1986 Sch. 19 para. 20,with effect from 18March 1986.
Notes on the whole Act
Textual amendments
- F1
By Finance Act 1986 s. 100(1), on and after 25 July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984.