SCHEDULES
F1SCHEDULE 5CVenture capital trusts: deferred charge on re-investment
Application of Schedule
1
1
This Schedule applies where—
a
there would (apart from paragraph 2(2)(a) below) be a chargeable gain (“the original gain”) accruing to an individual (“the investor”) at any time (“the accrual time”) on or after 6th April 1995;
b
that gain is one accruing on the disposal by the investor of any asset or in accordance with paragraphs 4 and 5 of Schedule 5B or paragraphs 4 and 5 below;
c
the investor makes a qualifying investment; and
d
the investor is resident or ordinarily resident in the United Kingdom at the accrual time and the time when he makes the qualifying investment and is not, in relation to the qualifying investment, a person to whom sub-paragraph (4) below applies.
2
The investor makes a qualifying investment for the purposes of this Schedule if—
a
he subscribes for any shares by reference to which he is given relief under Part I of Schedule 15B to the Taxes Act on any amount;
b
those shares are issued at a qualifying time; and
c
where that time is before the accrual time, those shares are still held by the investor at the accrual time;
and in this Schedule “relevant shares”, in relation to a case to which this Schedule applies, means any of the shares in a venture capital trust which are acquired by the investor in making the qualifying investment.
3
In this Schedule “a qualifying time”, in relation to any shares subscribed for by the investor, means—
a
any time in the period beginning twelve months before the accrual time and ending twelve months after the accrual time, or
b
any such time before the beginning of that period or after it ends as the Board may by notice allow.
4
This sub-paragraph applies to an individual in relation to a qualifying investment if—
a
though resident or ordinarily resident in the United Kingdom at the time when he makes the investment, he is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom; and
b
were section 151A(1) to be disregarded, the arrangements would have the effect that he would not be liable in the United Kingdom to tax on a gain arising on a disposal, immediately after their acquisition, of the shares acquired in making that investment.
Sch. 5C inserted (with effect in accordance with s. 72(8) of the amending Act) by Finance Act 1995 (c. 4), s. 72(4), Sch. 16