Amendments to Chapter 6 of Part 7 of ITEPA 2003
8(1)Section 506 (charge on partnership shares ceasing to be subject to plan) is amended as follows.
(2)In subsection (2) for “market value of the shares at the exit date” substitute “relevant amount”.
(3)After subsection (2) insert—
“(2A)Subject to subsection (2B), in subsection (2) “the relevant amount” means the market value of the shares at the exit date.
(2B)If the shares cease to be subject to the plan by virtue of a provision of the kind mentioned in paragraph 43(2B) of Schedule 2 (provision requiring partnership shares to be offered for sale), in subsection (2) “the relevant amount” means the lesser of—
(a)the amount of partnership share money used to acquire the shares, and
(b)the market value of the shares at the time they are offered for sale.
(2C)Paragraph 92(2) of Schedule 2 (market value of shares subject to a restriction) applies for the purposes of subsection (2B)(b).”
(4)After subsection (3) insert—
“(3A)If the shares cease to be subject to the plan by virtue of a provision of the kind mentioned in paragraph 43(2B) of Schedule 2, in subsection (3)(b) the reference to the market value of the shares at the exit date is to be read as a reference to the market value of the shares at the time they are offered for sale (as determined in accordance with paragraph 92(2) of Schedule 2 if relevant).”