Where part of a close company’s share capital consists of preference shares (within the meaning of section [F1210(4) of the Taxes Act 1988] and a transfer of value made by that or any other close company has only a small effect on the value of those shares, compared with its effect on the value of other parts of the company’s share capital, the preference shares shall be left out of account in determining the respective rights and interests of the participators for the purposes of sections 94 and 95 above.
Textual Amendments
F1 Substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32.Originally
“234(3) of the Taxes Act”.