Paragraph 19 F1F2

For the purposes of this Schedule—

• F3“51 per cent. subsidiary” has the meaning given by F4Chapter 3 of Part 24 of CTA 2010;

• F5“arrangements” includes any scheme, agreement, understanding, transaction or series of transactions (whether or not legally enforceable);

• “associate” has the meaning that would be given by F6section 448 of CTA 2010 if in that section “relative” did not include a brother or sister;

• F7“bonus shares” means shares which are issued otherwise than for payment (whether in cash or otherwise);

• F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “eligible shares” has the meaning given by section 289(7) of F9the Taxes Act or means shares that meet the requirement in section 173 (2) of ITA 2007;

• F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “non-resident” means a person who is F11not resident in the United Kingdom;

• “ordinary share capital” has F12the meaning given by section 989 of ITA 2007;

• “ordinary shares”, in relation to a company, means shares forming part of its ordinary share capital;

• F13“the period of restriction”, in relation to any shares, means the period—

  1. (a)

     beginning one year before the shares are issued, and

  2. (b)

     ending immediately before the termination date relating to the shares;

• “qualifying business activity” has the meaning given by section 289(2) of the Taxes Act F14or section 179 of ITA 2007;

• F15“qualifying company”, in relation to any eligible shares, means a company which, in relation to those shares, is—

  1. (a)

     a qualifying company for the purposes of Chapter 3 of Part 7 of the Taxes Act (except that for the purposes of this Schedule the reference in section 293(1B)(b)(i) of that Act to section 304A of that Act shall be read as a reference to paragraph 8 above), or

  2. (b)

     a qualifying company for the purposes of Part 5 of ITA 2007 (except that for the purposes of this Schedule the reference in section 184(1)(c)(i) of that Act to section 247 of that Act shall be read as a reference to paragraph 8 above).

• “the relevant period”, in the case of any shares, means the period found by applying section 312(1A)(a) of F16the Taxes Act or section 159(2) of ITA 2007 by reference to the company that issued the shares and by reference to the shares;

• F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F18“termination date”, in relation to any shares, means the date found by applying the definition of “termination date” in section 312(1) of the Taxes Act F19or section 256 of ITA 2007 by reference to the company that issued the shares and by reference to the shares.

For the purposes of this Schedule, “the relevant shares”, in relation to a case to which this Schedule applies, means the shares which—

This is subject to sub-paragraphs (1B) and (1D) below.

If any corresponding bonus shares in the same company are issued to the investor or any person who has acquired any of the relevant shares from the investor on a disposal within marriage F21or civil partnership, this Schedule shall apply as if references to the relevant shares were to all the shares comprising the relevant shares and the bonus shares so issued.

In sub-paragraph (1B) above “corresponding bonus shares” means bonus shares which—

If, in circumstances in which paragraph 8 above applies, new shares are issued in exchange for old shares, references in this Schedule to the relevant shares, so far as they relate to the old shares, shall be construed as references to the new shares and not to the old shares.

In sub-paragraph (1D) above “new shares” and “old shares” have the same meaning as in paragraph 8 above.

For the purposes of this Schedule, “deferral relief” is attributable to any shares if—

In this Schedule—

For the purposes of this Schedule shares in a company shall not be treated as being of the same class unless they would be so treated if dealt with on the Stock Exchange.

Notwithstanding anything in section 288(5), shares shall not for the purposes of this Schedule be treated as issued by reason only of being comprised in a letter of allotment or similar instrument.