16U.K.In section 302 (replacement capital)—
(a)for subsection (1) there is substituted—
“(1)Any relief attributable to any shares in a company held by an individual shall be withdrawn if—
(a)at any time in the relevant period, the company or any subsidiary—
(i)begins to carry on as its trade or as part of its trade a trade which was previously carried on at any time in that period otherwise than by the company or any subsidiary, or
(ii)acquires the whole, or a greater part, of the assets used for the purposes of a trade previously so carried on, and
(b)subsection (2) below applies in relation to that individual”,
(b)in subsection (3), for the words preceding paragraph (a) there is substituted “ Any relief attributable to any shares in a company held by an individual shall be withdrawn if ”,
(c)after subsection (4) there is inserted—
“(4A)In determining whether any relief attributable to any shares in a company (the “issuing company”) held by a person who—
(a)is a director of, or of a company which is a partner of, the issuing company or any subsidiary, and
(b)is in receipt of, or entitled to receive, remuneration as such a director falling within section 291A(5)(a),
is to be withdrawn, the second reference in paragraph (b) of each of subsections (2) and (3) above and, so far as relating to those paragraphs, in subsection (1)(a)(i) above to any time in the relevant period shall be read as a reference to any time before the end of the relevant period.
(4B)Section 291(4) applies for the purposes of subsection (4A) above as it applies for the purposes of section 291A, and in subsection (4A) above “remuneration” includes any benefit or facility”, and
(d)in subsection (5)—
(i)for the definition of “subsidiary” there is substituted—
“ “subsidiary” means a company which would be a subsidiary if the relevant period for the purposes of section 308 were the period referred to in section 312(1A)(a) ”, and
at the end of that subsection there is inserted— “ and section 312(1A)(a) applies to determine the relevant period for the purposes of this section ”.