SCHEDULES

SCHEDULE 8 Securities, Other Business Property and Agricultural Property

5

1

Section 105 of the 1984 Act (relevant business property) shall be amended as follows.

2

In subsection (1) after the words “sections 106, 108,” there shall be inserted “109A” and for paragraph (c) there shall be substituted the following paragraphs—

bb

unquoted shares in a company which do not fall within paragraph (b) above and which immediately before the transfer satisfied the condition specified in subsection (1A) below;

c

unquoted shares in a company which do not fall within paragraph (b) or paragraph (bb) above

3

After subsection (1) there shall be inserted the following subsections—

1A

The condition referred to in subsection (1)(bb) above is that the shares (either by themselves or together with other shares or securities owned by the transferor) gave the transferor control of powers of voting on all questions affecting the company as a whole which if exercised would have yielded more than 25 per cent. of the votes capable of being exercised on them; and shares shall be taken to satisfy this condition if, together with any shares which are related property within the meaning of section 161 below, they would have been sufficient to give the transferor such control.

1B

Subsections (3) and (4) of section 269 below have effect in relation to subsection (1A) above as they have effect in relation to subsection (1) of that section.

4

After subsection (2) there shall be inserted the following subsection—

2A

Shares of a company do not fall within subsection (1)(bb) above if—

a

they would not have been sufficient, without other property, to satisfy the condition specified in subsection (1A) above immediately before the transfer; and

b

their value is taken by virtue of section 176 below to be less than the value previously determined.