- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
39. Chapter II of Part IV of the 1992 Act shall have effect as if after section 133 of that Act (premiums on conversion of securities) there were inserted the following section—
133A.—(1) This section applies where, under a euroconversion of a security that does not involve a disposal of the security and accordingly is not a conversion of securities within section 132(3)(a)(1), a person receives, or becomes entitled to receive, any sum of money (“the cash payment”).
(2) If the cash payment is small, as compared with the value of the security concerned—
(a)receipt of the cash payment shall not be treated for the purposes of this Act as a disposal of part of the security, and
(b)the cash payment shall be deducted from any expenditure allowable under this Act as a deduction in computing a gain or a loss on a disposal of the security by the person receiving or becoming entitled to receive the cash payment.
(3) Where the allowable expenditure is less than the cash payment (or is nil)—
(a)subsection (2) above shall not apply, and
(b)if the recipient so elects (and there is any allowable expenditure)—
(i)the amount of the cash payment shall be reduced by the amount of the allowable expenditure, and
(ii)none of that expenditure shall be allowable as a deduction in computing a gain accruing on the occasion of the euroconversion or on any subsequent occasion.
(4) In this section—
(a)“allowable expenditure” means expenditure which immediately before the euroconversion was attributable to the security under paragraphs (a) and (b) of section 38(1);
(b)“euroconversion” has the meaning given by regulation 3 of the European Single Currency (Taxes) Regulations 1998.”
Section 132(3)(a) was amended by section 88(2) of the Finance Act 1997.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include: