27In section 312 (interpretation)—
(a)in subsection (1)—
(i)in the definition of “control”, for “291(7), 308(2) and 309(6)(a)” there is substituted “291B(4) and 308(2)”,
(ii)after the definition of “director” there is inserted—
““eligible for relief” has the meaning given by section 289(1),
“eligible shares” has the meaning given by section 289(7)”,
(iii)the definition of “fixed-rate preference share capital” is omitted,
(iv)the definition of “the relevant period” is omitted,
(v)for the definition of “the relief” and “relief” there is substituted—
““relief” means relief under this Chapter,
“subsidiary”, in relation to any company (except in the expression “51 per cent. subsidiary” or where otherwise defined), means a subsidiary of that company of a kind which that company may hold under section 308,
“51 per cent. subsidiary”, in relation to any company, means (except in the case of references to a company which is a 51 per cent. subsidiary on a particular date or at a particular time) a company which is a 51 per cent. subsidiary of that company at any time in the relevant period (applying subsection (1A)(a) below)”, and
(vi)for the definition of “unquoted company” there is substituted—
““unquoted company” means a company none of whose shares, stocks, debentures or other securities are marketed to the general public”,
(b)after that subsection there is inserted—
“(1A)In any provision of this Chapter “relevant period”, in relation to relief in respect of any eligible shares issued by a company, means whichever of the following periods is applied for the purposes of that provision (disregarding section 289B(5))—
(a)the period beginning with the incorporation of the company (or, if the company was incorporated more than two years before the date on which the shares were issued, beginning two years before that date) and ending five years after the issue of the shares, and
(b)the period beginning with the date on which the shares were issued and ending either—
(i)three years after that date, or
(ii)in a case falling within section 289(2)(a) where the company or subsidiary concerned had not begun to carry on the trade in question on that date, three years after the date on which it begins to carry on that trade.
(1B)For the purposes of the definition of “unquoted company” in subsection (1) above, shares, stocks, debentures or other securities are marketed to the general public if they are—
(a)listed on a recognised stock exchange,
(b)listed on a designated exchange in a country outside the United Kingdom, or
(c)dealt in on the Unlisted Securities Market or dealt in outside the United Kingdom by such means as may be designated.
(1C)In subsection (1B) above “designated” means designated by an order made by the Board for the purposes of that subsection; and an order made for the purposes of paragraph (b) of that subsection may designate an exchange by name, or by reference to any class or description of exchanges, including a class or description framed by reference to any authority or approval given in a country outside the United Kingdom.
(1D)Section 828(1) does not apply to an order made for the purposes of subsection (1B) above.
(1E)Where a company is an unquoted company at the time when any shares are issued, it shall not be treated for the purposes of this Chapter as ceasing to be an unquoted company in relation to those shares at any subsequent time by reason only that any shares, stocks, debentures or other securities of the company are at that time listed on an exchange, or dealt in by any means, designated by such an order if the order was made after the shares were issued”,
(c)in subsection (2), for “section 291” there is substituted “sections 291 to 291B”,
(d)for subsections (4) and (5) there is substituted—
“(4)In this Chapter—
(a)references in any provision to the reduction of any relief attributable to any shares include a reference—
(i)to the reduction of the relief to nil, and
(ii)where no relief has yet been given, to the reduction of the amount which apart from that provision would be the relief, and
(b)references to the withdrawal of any relief, in respect of any shares, are to the withdrawal of the relief attributable to those shares or, in a case where no relief has yet been given, to ceasing to be eligible for relief in respect of those shares.
(5)For the purposes of this Chapter, the market value at any time of any asset shall be taken to be the price which it might reasonably be expected to fetch on a sale at that time in the open market free from any interest or right which exists by way of security in or over it”, and
(e)in subsection (7), for “289(1)(d)” there is substituted “289(2)(c)”.