Textual Amendments
F1Sch. 5B inserted (with effect in accordance with Sch. 13 para. 4(4) of the amending Act) by Finance Act 1995 (c. 4), Sch. 13 para. 4(3)
3(1)Subject to the following provisions of this paragraph, there is for the purposes of this Schedule a chargeable event in relation to [F2any of the relevant shares] if, after the making of the qualifying investment—U.K.
(a)the investor disposes of those shares otherwise than by way of a disposal within marriage [F3or civil partnership];
(b)those shares are disposed of, otherwise than by way of a disposal to the investor, by a person who acquired them on a disposal made by the investor within marriage [F3or civil partnership];
(c)the investor becomes a non-resident while holding those shares and [F4before the termination date relating to those shares];
(d)a person who acquired those shares on a disposal within marriage [F3or civil partnership] becomes a non-resident while holding those shares and [F4before the termination date relating to those shares]; [F5or
(e)those shares cease (or are treated for the purposes of this Schedule as ceasing) to be eligible shares.]
F6(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)For the purposes of this Schedule there shall not be a chargeable event by virtue of sub-paragraph (1)(c) or (d) above in relation to any shares if—
(a)the reason why the person in question becomes a non-resident is that he works in an employment or office all the duties of which are performed outside the United Kingdom, and
(b)he again becomes resident or ordinarily resident in the United Kingdom within the period of three years from the time when he became a non-resident, without having meanwhile disposed of any of those shares;
and accordingly no assessment shall be made by virtue of sub-paragraph (1)(c) or (d) above before the end of that period in a case where the condition in paragraph (a) above is satisfied and the condition in paragraph (b) above may be satisfied.
(4)For the purposes of sub-paragraph (3) above a person shall be taken to have disposed of any shares if and only if there has been such a disposal as would have been a chargeable event in relation to those shares if the person making the disposal had been resident in the United Kingdom.
(5)Where in any case—
(a)the investor or a person who has acquired [F7any of the relevant shares] on a disposal within marriage [F3or civil partnership] dies, and
(b)an event occurs at or after the time of the death which (apart from this sub-paragraph) would be a chargeable event in relation to [F7any of the relevant shares] held by the deceased immediately before his death,
that event shall not be a chargeable event in relation to the shares so held.
[F8(6)Any reference in the following provisions of this Schedule to a chargeable event falling within a particular paragraph of sub-paragraph (1) above is a reference to a chargeable event arising for the purposes of this Schedule by virtue of that paragraph.]]
Textual Amendments
F2Words in Sch. 5B para. 3(1) substituted (with effect in accordance with s. 73(2) of the amending Act) by Finance Act 1999 (c. 16), Sch. 8 para. 4(d)
F3Words in Sch. 5B para. 3 inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 127
F4Words in Sch. 5B para. 3(1)(c)(d) substituted (11.5.2001) by Finance Act 2001 (c. 9), Sch. 15 para. 29 (with Sch. 3)
F5Sch. 5B para. 3(1)(e) and preceding word substituted for Sch. 5B para. 3(1)(e)(f) (with effect in accordance with s. 74(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 30(1)(b)
F6Sch. 5B para. 3(2) repealed (with effect in accordance with s. 74(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 30(2), Sch. 27 Pt. III(14)
F7Words in Sch. 5B para. 3(5)(a)(b) substituted (with effect in accordance with s. 73(2) of the amending Act) by Finance Act 1999 (c. 16), Sch. 8 para. 4(d)
F8Sch. 5B para. 3(6) inserted (with effect in accordance with s. 74(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 30(3)