SCHEDULES

SCHEDULE 22Avoidance involving financial arrangements

Schemes etc designed to reproduce interest-like return

16

(1)

Section 91E of FA 1996 (shares treated as loan relationship: schemes etc designed to produce return equating to return on investment of money at interest) is amended as follows.

(2)

In subsection (1)—

(a)

after “arrangement” insert “ (whether or not the investing company is a party to it) ”, and

(b)

after “return” insert “ (for any one or more persons) ”.

(3)

In subsection (3), insert at the end (but not as part of paragraph (d))— “ and acquiring rights or receiving benefits in respect of other shares. ”

(4)

The amendments made by this paragraph have effect in relation to times on or after 12 March 2008.