SCHEDULES

F1SCHEDULE 7ACExemptions for disposals by companies with substantial shareholding

Part 5Consequential provisions

Negligible value claims

33

(1)

This paragraph applies where—

(a)

a company makes a claim under section 24(2) (assets of negligible value) in relation to shares held by it, and

(b)

by virtue of this Schedule any loss accruing to the company on a disposal of the shares at the time of the claim would not be an allowable loss.

(2)

Where this paragraph applies the company may not exercise the option under section 24(2) to specify a time earlier than the time of the claim as the time when the shares are treated as sold and reacquired by virtue of that subsection.

(3)

This paragraph applies to—

(a)

an interest in shares in a company, or

(b)

an asset related to shares in a company,

as it applies to shares in that company.