[F1554IExclusions: introduction to sections 554J to 554MU.K.
(1)Sections 554J and 554K are about steps within section 554B taken in relation to awards of certain shares or securities or of sums of money determined by reference to the market value of certain shares or securities.
(2)Sections 554L and 554M are about steps within section 554B taken in relation to grants of rights to acquire certain shares or securities or to receive sums of money determined by reference to the market value of certain shares or securities.
(3)Sections 554J to 554M apply only if B is a company.
(4)In those sections—
“relevant benefits” has the same meaning as in Chapter 2 of Part 6, but ignoring section 393B(2)(a),
“relevant shares” means—
(a)shares (including stock) in B,
(b)instruments issued by B which are securities for the purposes of Chapters 1 to 5 of Part 7 within section 420(1)(b), or
(c)units in a collective investment scheme (as defined in section 420(2)) managed by B which are securities for the purposes of Chapters 1 to 5 of Part 7 within section 420(1)(e), and
“trading company” means a company the business of which consists wholly or mainly in the carrying on of a trade.
(5)If B is a member of a group of companies, in the definition of “relevant shares” in subsection (4) references to B are to be read as including references to any other company which is a member of that group.
(6)For the purposes of sections 554K and 554M an exit event occurs if—
(a)shares in the relevant company are admitted to trading on a stock exchange,
(b)all the shares in the relevant company, or a substantial proportion of them, are disposed of to persons none of whom is connected with any of the persons making any disposal,
(c)if the relevant company is a trading company (as defined in subsection (4)), the company's trade, or a substantial proportion of it, is transferred to a person who is not a relevant connected person,
(d)the relevant company's assets, or a substantial proportion of them, are disposed of to a person who is not a relevant connected person,
(e)the winding up of the relevant company starts, or
(f)a person (“P”) who controls the relevant company ceases to control it, so long as no person connected with P starts to control it.
(7)For the purposes of subsection (6)—
(a)“the relevant company” means—
(i)if the relevant shares mentioned in section 554K(1)(a)(i) or (ii) or 554M(1)(a)(i) or (ii) are shares (including stock), the company in which they are shares, or
(ii)if the relevant shares so mentioned are instruments within paragraph (b) of the definition of “relevant shares” in subsection (4), the company by which those instruments are issued,
(b)“relevant connected person” means a person who—
(i)is connected with the relevant company, or
(ii)is a shareholder in the relevant company or is connected with a shareholder in the relevant company,
(c)the relevant company's trade, or a substantial proportion of it, is transferred to another person if—
(i)the relevant company ceases to carry on the trade or the proportion of it, and
(ii)on that occurring, the other person starts to carry on the trade or the proportion of it, and
(d)section 12(7) of CTA 2009 applies for the purpose of determining when the winding up of the relevant company starts.]
Textual Amendments
F1Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1