4(1)The Taxes Act 1988 is amended as follows.
(2)In section 299 (disposal of shares)—
F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)in subsection (4C), as that section applies to shares issued before 1st January 1994 (business expansion scheme),
for “(whether or not by virtue of section 135(3) of that Act)" substitute “ (including a case where that section applies by virtue of any enactment relating to chargeable gains) ”, and for the words from “shall be construed" to the end substitute “ have the same meaning as in section 127 of the 1992 Act (or, as the case may be, that section as applied by virtue of the enactment concerned) ”.
F2(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Sch. 9 para. 4(2)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 2 (with Sch. 2)
F2Sch. 9 para. 4(3) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 2 (with Sch. 2)
F3Sch. 9 para. 4(4) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F4Sch. 9 para. 4(5)(6) repealed (with effect in accordance with reg. 1(2)(3), Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), reg. 1(1), Sch. 2
F5Sch. 9 para. 4(7) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)
5(1)The Taxation of Chargeable Gains Act 1992 (c. 12) is amended as follows.
F6(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)In section 102 (collective investment schemes with property divided into separate parts), in subsection (3)(b) after “135" insert “ or 136 ”.
(5)In section 137 (restriction on application of sections 135 and 136)—
(a)in subsection (1), for “, reconstruction or amalgamation" substitute “ or scheme of reconstruction ”; and
(b)in subsection (6), for “section 136(3)" substitute “ section 135(5), 136(5) ”.
(6)In section 138(1) (procedure for clearance in advance), for “, reconstruction or amalgamation" substitute “ or scheme of reconstruction ”.
(7)In section 139 (reconstruction involving transfer of business), for subsection (9) substitute—
“(9)In this section “scheme of reconstruction” has the same meaning as in section 136.”.
(8)In section 147 (quoted options treated as part of new holdings)—
(a)in subsection (1) for “or amalgamation" substitute “ , exchange or scheme of reconstruction ”; and
(b)in subsection (2) at the end insert “ and “scheme of reconstruction" has the same meaning as in section 136 ”.
(9)In section 151B (venture capital trusts: supplementary), in subsection (8) for paragraph (c) substitute—
“(c)a reference to the exchanged holding is, in relation to section 135 or 136, to the shares in the company referred to in that section as company A.”.
(10)In section 171(3) (transfers within a group) for “by virtue of sections 127 and 135" substitute “ by section 127 as it applies by virtue of section 135 ”.
F7(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12)In section 251 (debts: general provisions)—
(a)in subsection (2) for “132 and 135" substitute “ 132, 135 and 136 ”;
(b)in subsection (3)—
(i)for “132 and 135" substitute “ 132, 135 and 136 ”, and
(ii)for “either section 132 or 135" substitute “ section 132, 135 or 136 ”;
(c)in subsection (6)(b) for the words from “unaffected" to the end substitute “ to which section 135 applies and which is unaffected by section 137(1) ”.
F8(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(14)In Schedule 6 (retirement relief: supplementary provisions), in paragraph 2(2) for “section 135(3)" substitute “ section 135 or 136 ”.
Textual Amendments
F6Sch. 9 para. 5(2)(3) repealed (with effect in accordance with Sch. 9 para. 6 of the amending Act) by Finance Act 2011 (c. 11), Sch. 9 para. 5(d)
F7Sch. 9 para. 5(11) repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 27 Pt. 2(9)
F8Sch. 9 para. 5(13) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(ii)
6(1)Schedule 15 to the Finance Act 2000 (c. 17) (corporate venturing scheme) is amended as follows.
(2)In paragraph 71 (tax avoidance), in sub-paragraph (1)(b)(ii) for “reconstructions and amalgamations" substitute “ schemes of reconstruction ”.
(3)In paragraph 82(1) (company reconstructions and amalgamations), in the closing words for “company reconstructions and amalgamations" substitute “ share exchanges and company reconstructions ”.
(4)In paragraph 93(7) (identification of shares on a disposal: cases to which section 127 applies)—
(a)for “(whether or not by virtue of section 135(3) of that Act)" substitute “ (including a case where that section applies by virtue of any enactment relating to chargeable gains) ”; and
(b)for the words from “shall be construed" to the end substitute “ have the same meaning as in section 127 of the 1992 Act (or, as the case may be, that section as applied by virtue of the enactment concerned) ”.
(5)In paragraph 96 (meaning of “disposal")—
(a)in sub-paragraph (2)(a) for “section 136(1)" substitute “ section 136 ”;
(b)in sub-paragraph (2)(b) for “sections 135 and 136 of that Act to bona fide reconstructions and amalgamations" substitute “ section 136 of that Act to bona fide schemes of reconstruction ”.