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Regulation 4 Application

Original text. Later amendments are not shown.

(1)

Condition A is that a chargeable interest is acquired under a contract, the substantial performance or completion of which falls to be disregarded by virtue of section 45(3) of the Finance Act 2003.

(2)

Condition B is that the secondary contract referred to in section 45(3) of the Finance Act 2003 arises from a transaction with one or more of the following features—

(i)

a distribution in specie;

(ii)

an acquisition by a partnership;

(iii)

an acquisition by a settlement;

(iv)

an element of gift or transfer at an undervalue;

(v)

the grant of an option;

(vi)

an assignment or novation.

(3)

In regulation 4(2) above, a distribution in specie means a distribution of an asset in physical form without selling it and distributing the proceeds of sale.