http://www.legislation.gov.uk/ukpga/2005/5/section/381EIncome Tax (Trading and Other Income) Act 2005An Act to restate, with minor changes, certain enactments relating to income tax on trading income, property income, savings and investment income and certain other income; and for connected purposes.texttext/xmlenStatute Law Database2026-07-30Expert Participation2026-07-15 Income Tax (Trading and Other Income) Act 2005s. 168(6)(e) and wordPlanning (Consequential Provisions) (Wales) Act 2026Deddf Cynllunio (Darpariaethau Canlyniadol) (Cymru) 2026Sch. 2 para. 370(b)Sch. 5 Pt. 1s. 5(2) Part 4Chapter 2A381E1This 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—athe arrangement involves only excluded shares, andbno relevant arrangement has been made (by any person) in relation to those excluded shares.2For the purposes of this section shares are excluded shares if they are admitted to trading on a regulated market and—athey were issued before 6 April 2013, orbif 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.3In subsection (2) “regulated market” means—aa 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,ban EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, andca Gibraltar regulated market within the meaning given by Article 26(11)(b)(i) of that Regulation.4For the purposes of this section an arrangement is relevant, in relation to excluded shares, where—athe arrangement is made on or after 6 April 2013, andbit 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. 3S. 381E(3)(c) substituted (31.12.2020 immediately after S.I. 2019/689 comes into force) by The Taxes (Amendments) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/818), regs. 1(3), 5(2)S. 381E(3) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 13(3) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)