Finance Act 2001

Repayment of share capital

19 (1) In section 303 (repayment of share capital), in subsection (1) for “designated period” substitute “period of restriction”.

(2) In subsection (1AA) of that section for “section 303A” substitute “sections 303AA and 303A”.

(3) In subsection (1B) of that section (receipts of value which do not result in the withdrawal or reduction of income tax relief)—

(a) in paragraph (c) after “relief” insert “attributable to shares held by that person”, and

(b) after paragraph (c) insert—

“or it would have the effect mentioned in paragraph (a), (b) or (c) above were it not a receipt of insignificant value for the purposes of section 300 above, paragraph 13 of Schedule 5B to the 1992 Act or paragraph 47 of the Finance Act 2000, as the case may be”.

(4) In subsection (1C) of that section, in paragraph (a) for “receivable” substitute “received”.

(5) In subsection (2A) of that section, for paragraph (b) substitute—

“(b) if the shares were issued on or after 6th April 2000 but before 7th March 2001, the period beginning two years before the issue of the shares and ending immediately before the termination date relating to those shares,

(c) in any other case, the period of restriction for the issue.”.

(6) Omit subsections (3) to (7) of that section (determination of whether a person is connected with the issuing company in case where member of company receives value from it).

(7) In subsection (9A) of that section after “this section” insert “and section 303AA”.