Section 231 Shares: special provision.

United Kingdom

(1)

Subsection (2) below applies where—

(a)

a claim is made under section 229,

(b)

immediately after the time of the acquisition mentioned in section 227(5) and apart from this section, any replacement asset was a chargeable asset in relation to the claimant,

(c)

the asset consists of shares, and

(d)

in the period beginning with the acquisition and ending when section 229(1) or (3) falls to be applied relief is claimed under Chapter III of Part VII of the Taxes Act F1or Part 5 of ITA 2007 F2... in respect of the asset.

(2)

In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 227(5), it was not a chargeable asset in relation to the claimant.

(3)

Subsection (4) below applies where—

(a)

the provisions of section 229(1) or (3) have been applied,

(b)

any replacement asset which, immediately after the time of the acquisition mentioned in section 227(5) and apart from this section, was a chargeable asset in relation to the claimant consists of shares, and

(c)

after section 229(1) or (3) has been applied relief is claimed under Chapter III of Part VII of the Taxes Act F3or Part 5 of ITA 2007 in respect of the asset.

(4)

In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 227(5), it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly.

(5)

Subsection (4) above shall also apply where section 33(1) or (3) of the M1Finance Act 1990 has applied and the claimant acquired the replacement asset in a chargeable period beginning before 6th April 1992.

Annotations

Textual amendments

F1: Words in s. 231(1)(d) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 324 (with Sch. 2)
F2: Words in s. 231(1)(d) repealed (3.5.1994) by Finance Act 1994 (c. 9), Sch. 15 para. 34, Sch. 26 Pt. V(17)
F3: Words in s. 231(3)(c) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 324 (with Sch. 2)

Marginal citations

M1: 1990 c. 29.