Income Tax Act 2007

Taxation of Chargeable Gains Act 1992 (c. 12)

311 (1) Amend section 150A (enterprise investment schemes) as follows.

(2) In subsection (2) after “section 312 (1A)(a) of the Taxes Act” insert “or section 159(2) of ITA 2007”.

(3) In subsection (3) for paragraphs (a), (aa) and (b) substitute—

“(a) an individual’s liability to income tax has been reduced (or treated by virtue of section 304 of the Taxes Act or section 245 of ITA 2007 (spouses and civil partners) as reduced) for any year of assessment under section 289A of the Taxes Act or section 158 of ITA 2007 in respect of any issue of shares,

(b) the amount of the reduction (“A”) is less than the amount (“B”) which is equal to tax at the savings rate for that year on the amount subscribed for the issue, and

(c) A is not found under section 289A(2)(b) of the Taxes Act or (as the case may require) is not within paragraph (b) solely by virtue of section 29(2) and (3) of ITA 2007,”.

(4) In subsection (4) after “the Taxes Act” insert “or as provided by section 246 of ITA 2007”.

(5) In subsection (8B) for the words from “subsection (2)” to the end substitute “section 306(2) of the Taxes Act or section 203(1) of ITA 2007 and in accordance with section 306 of the Taxes Act or sections 204 and 205 of ITA 2007”.

(6) In subsection (8C) after “Taxes Act” insert “or section 159(2) of ITA 2007”.

(7) In subsection (8D)—

(a) after “section 304A of the Taxes Act” insert “or section 247 of ITA 2007”, and

(b) for paragraph (b) substitute—

“(b) the following—

(i) subsections (2)(b), (3) and (4) of section 304A of the Taxes Act and subsection (5) of that section so far as relating to section 306(2) of that Act, or

(ii) sections 247(3)(b), 248(2)(a) and 249 of ITA 2007,

shall apply for the purposes of this section as they apply for the purposes of Chapter 3 of Part 7 of the Taxes Act or Part 5 of ITA 2007.”

(8) In subsection (10A) for “the same meaning as in the Taxes Act” substitute “the meaning given in section 989 of ITA 2007”.

(9) In subsection (11)—

(a) after “Taxes Act” insert “or Part 5 of ITA 2007”, and

(b) after “that Chapter” insert “or means shares that meet the requirements of section 173(2) of ITA 2007”.

(10) After subsection (12) insert—

“(13) References in this section to Part 5 of ITA 2007 or any provision of that Part are to a Part or provision that applies only in relation to shares issued after 5 April 2007.”