2.Subsection (1) is the substantive repeal of the charging provisions.
3.Subsection (2) amends section 90(1B) of the Finance Act 1986 in two ways. Firstly, it restricts the scope of this subsection to in specie redemptions that are pro rata, meaning that non-pro rata in specie redemptions will no longer be exempt. Secondly, it defines the term “surrender” since the definition in Schedule 19 to the Finance Act 1999 is being repealed.
4.Subsection (3) makes consequential amendments to primary legislation.
5.Subsection (4) is the commencement provision. The abolition is effective from a Sunday so as to minimise any computational difficulties.
6.Subsection (5) allows consequential amendments to secondary legislation to be made with retrospective effect. This is to allow the amendments to secondary legislation to have the same effective date as the changes to primary legislation.