Finance Act 1998

Interpretation of Chapter III U.K.

23 (1) In subsection (1) of section 312 of the Taxes Act 1988— U.K.

(a) the definition of “new consideration” shall cease to have effect; and

(b) for the definitions of “research and development” and “relief” there shall be substituted the following definitions—

“'relief’ means relief under this Chapter;

'research and development’ means any activity which is intended to result in a patentable invention (within the meaning of the M1 Patents Act 1977) or in a computer program;

'the seven year period’ has the meaning given by section 291(6);”.

(2) In subsection (1A) of that section, the words “(disregarding section 289B(5))" shall cease to have effect.

(3) In subsection (1B)(c) of that section, the words “dealt in on the Unlisted Securities Market or" shall cease to have effect.

(4) In subsection (2) of that section, for the words “sections 291 to 291B" there shall be substituted the words “ section 291, section 291A(1), (4) and (5) and section 291B ”.

(5) After subsection (4) of that section there shall be inserted the following subsections—

“(4A) In this Chapter references (however expressed) to an issue of eligible shares in any company are to any eligible shares in the company that are of the same class and are issued on the same day.

(4B) For the purposes of this Chapter shares in a company shall not be treated as being of the same class unless they would be so treated if dealt with on the Stock Exchange.”

(6) In subsection (7) of that section, for the words “section 289(2)(c)” there shall be substituted the words “ subsection (2)(c) of section 289 ”.

Marginal Citations

M1 1977 c. 37.