1U.K.Chapter 3 of Part 8 of ITA 2007 (relief for gifts by individuals of shares, securities and real property to charities etc) is amended as follows.
2(1)Section 437 (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 individual 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 individual in entering into the scheme was to obtain relief, or an increased amount of relief, under 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 the entry relating to section 438 insert— “ section 438A (acquisition value of qualifying investments), ”.
3U.K.After section 438 insert—
(1)For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by an individual is—
(a)where the qualifying investment was acquired by the individual within the period of 4 years ending with the day on which the disposal is made, the cost to the individual 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 individual 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 individual of an acquisition is to—
(a)the consideration given by the individual for the acquisition, less
(b)any amount that is received in connection with the acquisition, by the individual or a person connected with the individual, as part of the scheme in question.”
4U.K.In Schedule 4 to ITA 2007 (index of defined expressions), after the entry relating to accumulated or discretionary income insert—
| “acquisition value of a qualifying investment (in Chapter 3 of Part 8) | section 438A”. |