(1)For the purposes of this section each of the following is a chargeable event in relation to the trustees of an employee share ownership trust—
(a)an event which is a chargeable event by virtue of section 69 above;
(b)an event which is a chargeable event by virtue of section 71 above.
(2)If a chargeable event (the event in question) occurs in relation to the trustees of an employee share ownership trust, the following rules shall apply—
(a)the amount which would (apart from this subsection) be the chargeable amount for the event in question shall be aggregated, for the purposes of paragraph (b) below, with the chargeable amounts for other chargeable events(if any) occurring in relation to the trustees before the event in question,
(b)if the amount which would (apart from this subsection) be the chargeable amount for the event in question (or the aggregate found under paragraph (a)above, if there is one) exceeds the deductible amount, the chargeable amount for the event in question shall be the amount it would be apart from this subsection less an amount equal to the excess, and
(c)section 70(2) and (3) and section 71(5) above shall have effect subject to paragraph (b) above.
(3)For the purposes of subsection (2) above the deductible amount (as regards the event in question) is an amount equal to the total of the sums falling within subsection (4) below.
(4)A sum falls within this subsection if it has been received by the trustees before the occurrence of the event in question and—
(a)it has been deducted as mentioned in section 67(2)(a) above, or treated as mentioned in section 67(2)(b) above, before the occurrence of that event, or
(b)it would fall to be so deducted or treated if a claim for relief under section 67 above had been made immediately before the occurrence of that event.
Modifications etc. (not altering text)
C1 See Finance Act 1990 (c. 29) ss.31–40—.roll-over relief for disposal of assets to employeeshare ownership trusts