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:                                             

166

 

, continued

 
 

(4)    

Any claim for relief under section 236H made in respect of the

 

disposal before that day is revoked, and the chargeable gains and

 

allowable losses of any person for any chargeable period are to be

 

calculated as if that claim had never been made.

 

(5)    

Such adjustments must be made in relation to any person, whether by

 

the making of assessments or otherwise, as are required to give effect

 

to subsection (4) (regardless of any limitation on the time within which

 

any adjustment may be made).

 

(6)    

Section 236H(4A) (restrictions on application of section 236L) applies

 

for the purposes of subsection (2)(b).

 

(7)    

Section 236N(2) applies for the purposes of subsection (2)(d) as it

 

applies in relation to section 236N(1)(b) and (1A).”

 

Mr Chancellor of the Exchequer

 

Agreed to  55

 

Schedule  33,  page  567,  line  11,  after “occasion” insert “, after the end of the tax

 

year following the tax year in which the acquisition occurs, when”

 

Mr Chancellor of the Exchequer

 

Agreed to  56

 

Schedule  33,  page  567,  leave out lines 13 to 25 and insert—

 

“(2)    

A “disqualifying event” occurs in relation to the acquisition if and when—

 

(a)    

C ceases to meet the trading requirement,

 

(b)    

the settlement ceases to meet the all-employee benefit requirement,

 

(c)    

the settlement ceases to meet the controlling interest requirement,

 

(d)    

the participator fraction exceeds 2/5, or

 

(e)    

the trustees act in a way which the trusts, as required by the all-employee

 

benefit requirement, do not permit.”

 

Mr Chancellor of the Exchequer

 

Agreed to  57

 

Schedule  33,  page  567,  line  26,  leave out “after” and insert “before”

 

Mr Chancellor of the Exchequer

 

Agreed to  58

 

Schedule  33,  page  567,  line  34,  leave out “(2)(b)(i)” and insert “(2)(b)”

 

Mr Chancellor of the Exchequer

 

Agreed to  59

 

Schedule  33,  page  567,  leave out lines 44 to 48

 

Mr Chancellor of the Exchequer

 

Agreed to  60

 

Schedule  33,  page  568,  line  1,  leave out “(2)(b)(ii) as it applies in relation to

 

section 236N(1)(b)” and insert “(2)(b) as it applies in relation to section 236N(1)(b) and

 

(1A)”

 

Mr Chancellor of the Exchequer

 

Agreed to  61

 

Schedule  33,  page  568,  line  36,  at end insert—


 
 

:                                             

167

 

, continued

 
 

“(7)    

Section 236PA makes provision about events which prevent a claim being made

 

under this section and circumstances in which a claim is revoked.”

 

Mr Chancellor of the Exchequer

 

Agreed to  62

 

Schedule  33,  page  568,  line  36,  at end insert—

 

“236PA 

 No section 236P relief if disqualifying event in next tax year

 

(1)    

This section applies where—

 

(a)    

a deemed disposal arises in circumstances where paragraphs

 

(a) to (c) of section 236P(1) are satisfied, and

 

(b)    

one or more disqualifying events occur in relation to the

 

disposal in the tax year following the tax year in which the

 

deemed disposal arises.

 

(2)    

No claim for relief under section 236P may be made in respect of the

 

deemed disposal on or after the day on which the disqualifying event

 

(or, if more than one, the first of them) occurs.

 

(3)    

Any claim for relief under section 236P made in respect of the deemed

 

disposal before that day is revoked, and the chargeable gains and

 

allowable losses of any person for any chargeable period are to be

 

calculated as if that claim had never been made.

 

(4)    

Such adjustments must be made in relation to any person, whether by

 

the making of assessments or otherwise, as are required to give effect

 

to subsection (3) (regardless of any limitation on the time within which

 

any adjustment may be made).

 

(5)    

“Disqualifying event” is to be construed in accordance with

 

subsections (2), (6) and (7) of section 236NA except that—

 

(a)    

references in those subsections to the disposal are to be read

 

as references to the deemed disposal, and

 

(b)    

in applying sections 236I to 236O and 236R for this

 

purpose—

 

(i)    

references in those provisions to the settlement are to

 

be read as references to the acquiring settlement

 

(within the meaning of section 236P(1)), and

 

(ii)    

references in those provisions to C are to be read as

 

references to the company mentioned in section

 

236P(1)(b).”

 

Mr Chancellor of the Exchequer

 

Agreed to  63

 

Schedule  33,  page  570,  line  17,  leave out “The” and insert “Subject to paragraph

 

2A, the”

 

Mr Chancellor of the Exchequer

 

Agreed to  64

 

Schedule  33,  page  570,  line  18,  at end insert—

 

“2A      

In relation to disposals made on or after 6 April 2014 but before 26 June 2014,

 

TCGA 1992 has effect as if—

 

(a)    

in section 236H—


 
 

:                                             

168

 

, continued

 
 

(i)    

in subsection (4)(b), for the words from “at the time of the

 

disposal” to the end there were substituted “(see sections 236J

 

to 236L)”,

 

(ii)    

subsection (4)(c)(ii) (and the “and” before it) were omitted,

 

and

 

(iii)    

subsections (4A) and (7) were omitted,

 

(b)    

in section 236N—

 

(i)    

in subsection (A1), for “Conditions A and B are” there were

 

substituted “Condition A is”, and

 

(ii)    

subsection (1A) were omitted,

 

(c)    

section 236NA were omitted,

 

(d)    

in section 236O—

 

(i)    

in subsection (1) the words “, after the end of the tax year

 

following the tax year in which the acquisition occurs, when”

 

were omitted,

 

(ii)    

for subsection (2) there were substituted—

 

“(2)    

A “disqualifying event” occurs in relation to the

 

acquisition if and when—

 

(a)    

at any time after that tax year—

 

(i)    

C ceases to meet the trading

 

requirement, or

 

(ii)    

the settlement ceases to meet the

 

controlling interest requirement, or

 

(b)    

at any time after the acquisition—

 

(i)    

the settlement ceases to meet the all-

 

employee benefit requirement,

 

(ii)    

the participator fraction exceeds 2/5,

 

or

 

(iii)    

the trustees act in a way which the

 

trusts, as required by the all-

 

employee benefit requirement, do

 

not permit.”,

 

(iii)    

in subsection (3) for “before” there were substituted “after”,

 

(e)    

section 236P(7) were omitted, and

 

(f)    

section 236PA were omitted.”

 

Mr Chancellor of the Exchequer

 

Agreed to  65

 

Schedule  33,  page  575,  line  36,  leave out “day of the disposal mentioned in section

 

236H(1)” and insert “time in question”

 

Mr Chancellor of the Exchequer

 

Agreed to  66

 

Schedule  33,  page  582,  line  9,  leave out “date of the disposal mentioned in section

 

236H(1)” and insert “time in question”

 

Bill read the third time on division, and passed.


 
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