Part 4Savings and investment income
F1Chapter 2ADisguised interest
381EException for returns from certain shares
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.
F33
In subsection (2) “regulated market” means—
a
a UK regulated market within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments,
b
an EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, and
F2c
a Gibraltar regulated market within the meaning given by Article 26(11)(b)(i) of that Regulation.
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.
Pt. 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