|Finance (No. 2) Bill - continued||House of Commons|
|SCHEDULE 13, CHANGES TO EIS ETC - continued|
|PART III, EIS DEFERRAL OF CHARGEABLE GAINS - continued|
|back to previous text|
Value received by other persons
| 14. - (1) Sub-paragraph (2) below applies where an individual subscribes for eligible shares ("the shares") in a company and at any time in the seven year period the company or any subsidiary- |
| (2) The shares shall be treated for the purposes of this Schedule- |
| (3) An individual falls within this sub-paragraph if the repayment, redemption, repurchase or payment in question- |
| (4) In sub-paragraph (3) above "qualifying chargeable event" means- |
| (5) Where- |
the preceding provisions of this paragraph shall not apply in relation to any redemption of any of the original shares within 12 months of the date on which those shares were issued.
| (6) In relation to companies incorporated under the law of Northern Ireland references in sub-paragraph (5) above to the Companies Act 1985 and to section 117 of that Act shall have effect as references to the Companies (Northern Ireland) Order 1986 and to Article 127 of that Order.|
| (7) References in this paragraph to a subsidiary of a company are references to a company which at any time in the relevant period is a 51 per cent subsidiary of the first mentioned company, whether or not it is such a subsidiary at the time of the repayment, redemption, repurchase or payment in question.|
| 15. - (1) Where at any time in the relevant period an investment-linked loan is made by any person to an individual who subscribes for eligible shares ("the shares") in a company, the shares shall be treated for the purposes of this Schedule- |
| (2) A loan made by any person to an individual is an investment-linked loan for the purposes of this paragraph if the loan is one which would not have been made, or would not have been made on the same terms, if the individual had not subscribed for the shares or had not been proposing to do so.|
| (3) References in this paragraph to the making by any person of a loan to an individual include references- |
| (4) In this paragraph any reference to an individual includes a reference to an associate of his."|
| 36. After paragraph 15 there shall be inserted the following paragraphs-|
| 16. - (1) Where, in relation to any relevant shares held by an individual- |
the individual shall within 60 days of his coming to know of the event give a notice to the inspector containing particulars of the circumstances giving rise to the event.
| (2) Where, in relation to any relevant shares in a company, a chargeable event falling within paragraph 3(1)(e) above occurs by virtue of paragraph 1A(1) or (2), 13(1)(b) or 14(2)(b) above- |
shall within 60 days of the event or, in the case of a person within paragraph (b) above, of his coming to know of it, give a notice to the inspector containing particulars of the circumstances giving rise to the event.
| (3) A chargeable event falling within paragraph 3(1)(e) above which, but for paragraph 1A(5) above, would occur at any time by virtue of paragraph 1A(1) or (2) above shall be treated for the purposes of sub-paragraph (2) above as occurring at that time.|
| (4) Where a company has issued a certificate under section 306(2) of the Taxes Act (as applied by paragraph 6 above) in respect of any eligible shares in the company, and the condition in paragraph 1(2)(g) above is not satisfied in relation to the shares- |
shall within 60 days of the time mentioned in section 289(3) of the Taxes Act or, in the case of a person within paragraph (b) above, of his coming to know that the condition is not satisfied, give notice to the inspector setting out the particulars of the case.
| (5) If the inspector has reason to believe that a person has not given a notice which he is required to give- |
the inspector may by notice require that person to furnish him within such time (not being less than 60 days) as may be specified in the notice with such information relating to the event or case as the inspector may reasonably require for the purposes of this Schedule.
| (6) Where a claim is made under this Schedule in respect of shares in a company and the inspector has reason to believe that it may not be well founded by reason of any such arrangements as are mentioned in paragraphs 1(2)(d) or 11(1) above, or section 293(8) or 308(2)(e) of the Taxes Act, he may by notice require any person concerned to furnish him within such time (not being less than 60 days) as may be specified in the notice with- |
| (7) For the purposes of sub-paragraph (6) above, the persons who are persons concerned are- |
and for those purposes the references in paragraphs (a) and (b) above to the claimant include references to any person to whom the claimant appears to have made a disposal within marriage of any of the shares in question.
| (8) Where deferral relief is attributable to shares in a company- |
shall, if so required by the inspector, state whether the payment or asset received by him or on his behalf is received on behalf of any person other than himself and, if so, the name and address of that person.
| (9) Where a claim has been made under this Schedule in relation to shares in a company, any person who holds or has held shares in the company and any person on whose behalf any such shares are or were held shall, if so required by the inspector, state- |
| (10) No obligation as to secrecy imposed by statute or otherwise shall preclude the inspector from disclosing to a company that relief has been given or claimed in respect of a particular number or proportion of its shares.|
|© Parliamentary copyright 1998||Prepared 6 April 1998|