SCHEDULES
SCHEDULE 2Transitionals and savings
Part 6Losses on disposal of shares
The control and independence requirement
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1
In relation to shares issued before 6 April 2007, section 139(1)(a) applies with the omission of “of the company”.
2
In relation to shares issued before 21 March 2000, section 139 applies with the following modifications—
a
the substitution for subsections (1) to (3) of—
1
The control element of the requirement is that—
a
the company must not control (or together with any person connected with it control) another company or have a 51% subsidiary, and
b
no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a).
2
The independence element of the requirement is that—
a
the company must not be under the control of another company (or another company and any other person connected with that company) or be a 51% subsidiary of another company, and
b
no arrangements must be in existence by virtue of which the company could fail to meet paragraph (a).
3
This section is subject to section 145(3); and nothing in subsection (1) prevents the company having one or more qualifying subsidiaries.
b
in subsection (4) the omission of the definition of “arrangements” and, in the definition of “control”, the omission of “in subsection (1)(a)”.
3
In the application of sub-paragraph (2) on or after 21 March 2000, shares—
a
that were issued on or after 6 April 1998 but before 21 March 2000, and
b
to which EIS relief or relief under Schedule 5B to TCGA 1992 was attributable immediately before 21 March 2000,
are treated as having been issued on or after 21 March 2000.
4
Section 139 does not apply in relation to shares issued before 6 April 1998.
5
Sub-paragraphs (1) to (4) apply in relation to section 576D of ICTA (which makes corresponding provision for the purposes of corporation tax) as they apply in relation to section 139.
6
For the purposes of sub-paragraph (5), sub-paragraph (2) applies with the following modifications—
a
in paragraph (a), the substitution for “section 145(3)” of “section 576J(3)”, and
b
in paragraph (b), the insertion at the end of “and paragraph (b)”.