[F1381EException for returns from certain sharesU.K.
(1)This Chapter does not apply in relation to an arrangement that produces a return for a person, in relation to an amount, which is economically equivalent to interest where—
(a)the arrangement involves only excluded shares, and
(b)no relevant arrangement has been made (by any person) in relation to those excluded shares.
(2)For the purposes of this section shares are excluded shares if they are admitted to trading on a regulated market and—
(a)they were issued before 6 April 2013, or
(b)if issued on or after that date, at the time of issue no arrangements involving only the shares would produce a return, in relation to an amount, which is economically equivalent to interest.
(3)In subsection (2) “regulated market” has the same meaning as in [F2Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments (see Article 4.1.21)].
(4)For the purposes of this section an arrangement is relevant, in relation to excluded shares, where—
(a)the arrangement is made on or after 6 April 2013, and
(b)it is reasonable to assume that the main purpose, or one of the main purposes, of the arrangement is to secure that arrangements involving only the shares produce a return, in relation to an amount, which is economically equivalent to interest.]
Textual Amendments
F1Pt. 4 Ch. 2A inserted (with effect in accordance with Sch. 12 para. 18 of the amending Act) by Finance Act 2013 (c. 29), Sch. 12 para. 3
F2Words in s. 381E(3) substituted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 4 para. 8 (with reg. 7)