[F1150B Enterprise investment scheme: reduction of relief.U.K.
(1)This section has effect where section 150A(2) applies on a disposal of F2... shares, and before the disposal but on or after 29th November 1994—
(a)value is received in circumstances where relief attributable to the shares is reduced by an amount under section 300(1A)(a) of the Taxes Act [F3or section 213(2)(a) of ITA 2007],
(b)there is a repayment, redemption, repurchase or payment in circumstances where relief attributable to the shares is reduced by an amount under section 303(1A)(a) of [F4the Taxes Act or section 224(2)(a) of ITA 2007], or
(c)paragraphs (a) and (b) above apply.
(2)If section 150A(2) applies on the disposal but section 150A(3) does not, section 150A(2) shall apply only to so much of the gain as remains after deducting so much of it as is found by multiplying it by the fraction—
(a)whose numerator is equal to the amount by which the relief attributable to the shares is reduced as mentioned in subsection (1) above, and
(b)whose denominator is equal to the amount of the relief attributable to the shares.
(3)If section 150A(2) and (3) apply on the disposal, section 150A(2) shall apply only to so much of the gain as is found by—
(a)taking the part of the gain found under section 150A(3), and
(b)deducting from that part so much of it as is found by multiplying it by the fraction mentioned in subsection (2) above.
(4)Where the relief attributable to the shares is reduced as mentioned in subsection (1) above by more than one amount, the numerator mentioned in subsection (2) above shall be taken to be equal to the aggregate of the amounts.
(5)The denominator mentioned in subsection (2) above shall be found without regard to any reduction mentioned in subsection (1) above.
(6)[F5Subsections (11) to (13)] of section 150A apply for the purposes of this section as they apply for the purposes of that section.]
Textual Amendments
F1S. 150B inserted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 13 para. 3
F2Word in s. 150B(1) repealed (with effect in accordance with Sch. 13 para. 25(2) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 25(1), Sch. 27 Pt. III(14)
F3Words in s. 150B(1)(a) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 312(2)(a) (with Sch. 2)
F4Words in s. 150B(1)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 312(2)(b) (with Sch. 2)
F5Words in s. 150B(6) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 312(3) (with Sch. 2)