5U.K.Chapter 3 of Part 6 of CTA 2010 (charitable donations relief: amounts treated as qualifying charitable donations) is amended as follows.
6(1)Section 209 (value of net benefit to charity) is amended as follows.U.K.
(2)In subsection (1), for “market” (in both places) substitute “ relevant ”.
(3)After that subsection insert—
“(1A)In subsection (1) “relevant value” means—
(a)where subsection (1B) applies, the lower of the market value and the acquisition value, and
(b)otherwise, the market value.
(1B)This subsection applies where—
(a)the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the company making the disposal within the period of 4 years ending with the day on which the disposal is made,
(b)the acquisition was made as part of a scheme, and
(c)the main purpose, or one of the main purposes, of the company in entering into the scheme was to obtain relief, or an increased amount of relief, as a result of this Chapter.
(1C)In subsection (1B) “scheme” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.”
(4)In subsection (2), after paragraph (a) insert—
“(aa)section 210A (acquisition value of qualifying investments),”.
7U.K.After section 210 insert—
(1)For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by a company is—
(a)where the qualifying investment was acquired by the company within the period of 4 years ending with the day on which the disposal is made, the cost to the company of acquiring it, or
(b)where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the company of acquiring that thing as is just and reasonable to attribute to the qualifying investment.
(2)A reference in subsection (1) to the cost to the company of an acquisition is to—
(a)the consideration given by the company for the acquisition, less
(b)any amount that is received in connection with the acquisition, by the company or a person connected with it, as part of the scheme in question.”
8U.K.In Schedule 4 to CTA 2010 (index of defined expressions), after the entry relating to accounts (in Chapter 2 of Part 16) insert—
| “acquisition value of a qualifying investment (in Chapter 3 of Part 6) | section 210A”. |