Part 4Savings and investment income
C1Chapter 8Profits from deeply discounted securities
Special rules for listed securities held since 26th March 2003
456Securities issued to connected persons etc. at excessive price: subsequent transfers to connected persons
1
No loss is taken to occur for the purposes of section 454 on a transfer of a deeply discounted security to a person connected with the transferor if conditions A and B and either condition C or conditions D and E are met.
2
Condition A is that the transferor acquired the security on its issue.
3
Condition B is that the amount paid by the transferor to acquire the security exceeded the market value of the security at the time of its issue.
4
Condition C is that at that time the transferor was connected with the issuer.
5
Condition D is that at that time the issuer was a close company.
6
Condition E is that at that time the transferor controlled that company with other persons to whom securities of the same kind were also issued.
F17
Chapter 2 of Part 10 of CTA 2010 (meaning of “close company”) applies for the purposes of this section but with the omission of section 442(a) (exclusion of non-UK resident companies).
8
In this section “control” has the meaning given by F2sections 450 and 451 of CTA 2010.
Pt. 4 Ch. 8 applied (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 406(4), 1329(1) (with Sch. 2 Pts. 1, 2)