57(1)Any repayment shall be disregarded for the purposes of paragraph 56(1) (repayments etc. which cause withdrawal of investment relief) if whichever is the greater of—U.K.
(a)the market value of the shares to which it relates (“”) immediately before the event occurs, and
(b)the amount received by the member in question,
is insignificant in relation to the market value of the remaining [F1issued] share capital of the issuing company (or, as the case may be, subsidiary) immediately after the event occurs.
This is subject to sub-paragraph (4).
(2)For the purposes of this paragraph “repayment” means a repayment, redemption, repurchase or payment mentioned in paragraph 56(1) (repayments etc. which cause withdrawal of investment relief).
(3)For the purposes of sub-paragraph (1) it shall be assumed that the target shares are cancelled at the time the [F2repayment] is made.
(4)Sub-paragraph (1) does not apply if, at a relevant time, arrangements are in existence that provide—
(a)for a repayment by the issuing company or any subsidiary of that company (whether or not it is such a subsidiary at the time the arrangements are made), or
(b)for anyone to be entitled to such a repayment,
at any time in the period of restriction relating to the shares.
(5)For the purposes of sub-paragraph (4) “a relevant time” means any time in the period—
(a)beginning one year before the relevant shares are issued, and
(b)expiring at the end of the issue date.
Textual Amendments
F1Word in Sch. 15 para. 57(1) inserted (11.5.2001 with effect as mentioned in Sch. 15 para. 9(3) of the amending Act) by 2001 c. 9, s. 64, Sch. 16 Pt. 2 para. 9(1)(3)
F2Word in Sch. 15 para. 57(3) substituted (retrospectively) by 2001 c. 9, s. 64, Sch. 16 Pt. 2 para. 9(2)(4)