PART VIIU.K. GENERAL PROVISIONS RELATING TO TAXATION OF INCOME OF INDIVIDUALS

CHAPTER IIIU.K. [F1ENTERPRISE INVESTMENT SCHEME]

Textual Amendments

F1Pt. 7 Ch. 3 heading substituted (with effect in accordance with s. 137(2) of the amending Act) by Finance Act 1994 (c. 9), s. 137(1), Sch. 15 para. 2

Modifications etc. (not altering text)

C1Pt. 7 Ch. 3 applied (with effect in accordance with Sch. 13 para. 4(4) of the 1995 amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), Sch. 5B para. 6(4) (as inserted by Finance Act 1995 (c. 4), Sch. 13 para. 4(3))

[F2304 Husband and wife.U.K.

(1)Section 299(1) shall not apply to a disposal of shares to which an amount of relief is attributable made by a married man to his wife or a married woman to her husband at a time when they are living together.

(2)Where such shares issued to one of them (“the transferor”) are transferred to the other (“the transferee”) by a transaction inter vivos to which that section does not apply, this Chapter shall have effect, in relation to any subsequent disposal or other event, as if—

(a)the transferee were the person who had subscribed for the shares,

(b)the transferee’s liability to income tax had been reduced under section 289A in respect of those shares for the same year of assessment as that for which the transferor’s liability was so reduced and, accordingly, that amount of relief had continued to be attributable to the shares notwithstanding the transfer.

(3)Any assessment for reducing or withdrawing the relief by reason of any such disposal or other event shall be made on the transferee.

[F3(4)Subsections (6) to (6D) of section 299 shall apply for the purposes of this section as they apply for the purposes of that section.]]

Textual Amendments

F2S. 304 substituted (with effect as mentioned in s. 137(1)(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 15 para. 18

F3S. 304(4) inserted (with effect in accordance with s. 74(3), Sch. 13 para. 16(2) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 16(1); and see also the s. 304(7) inserted (with effect in accordance with s. 74(3), Sch. 13 para. 40(2) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 paras. 37, 40(1)