(1)In this Part—
[F1“arrangements” includes any scheme, agreement, understanding, transaction or series of transactions (whether or not legally enforceable);]
“” means shares which are issued otherwise than for payment (whether in cash or otherwise),
“director” is read in accordance with [F2section 452 of CTA 2010],
“group” means a parent company and its qualifying subsidiaries,
“group company”, in relation to a group, means the parent company or any of its qualifying subsidiaries,
“” means shares forming part of a company's ordinary share capital,
“parent company” means a company that has one or more qualifying subsidiaries and “single company” means a company that does not,
“period A”, “period B” and “period C” have the meaning given by section 159, and
“research and development” has the meaning given by section 1006.
(2)Section 993 (connected persons) does not apply for the purposes of Chapter 2 (other than section 168(4)).
(3)Section 995 (control) does not apply for the purposes of the following provisions—
section 185(1)(a),
section 199(3)(a) and (b)(ii),
section 232(3),
section 233(2), and
section 243(4),
and in those provisions “control” is to be read in accordance with [F3sections 450 and 451 of CTA 2010].
(4)In this Part—
(a)references in any provision to the reduction of any EIS relief attributable to any shares include a reference—
(i)to the reduction of the relief to nil, and
(ii)if no relief has yet been obtained, to the reduction of the amount which apart from that provision would be the EIS relief, and
(b)references to the withdrawal of EIS relief in respect of any shares are—
(i)to the withdrawal of the EIS relief attributable to those shares, or
(ii)if no relief has yet been obtained, to ceasing to be eligible for EIS relief in respect of those shares.
(5)For the purposes of this Part shares in a company are not treated as being of the same class unless they would be so treated if dealt in on [F4a recognised stock exchange].
(6)For the purposes of this Part the market value at any time of any asset is the price which it might reasonably be expected to fetch on a sale at that time in the open market free from any interest or right which exists by way of security in or over it.
(7)In this Part—
(a)references to EIS relief obtained by an individual in respect of any shares include references to EIS relief obtained by the individual in respect of those shares at any time after the individual has disposed of them, and
(b)references to the withdrawal or reduction of EIS relief obtained by an individual in respect of any shares include references to the withdrawal or reduction of EIS relief obtained by the individual in respect of those shares at any such time.
(8)In the case of requirements that cannot be met until a future date, references in this Part to requirements being met for the time being are to nothing having occurred to prevent their being met.
Textual Amendments
F1Words in s. 257(1) substituted (retrospective to 6.4.2012) by Finance Act 2012 (c. 14), Sch. 7 paras. 21, 25
F2Words in s. 257(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 503(a) (with Sch. 2)
F3Words in s. 257(3) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 503(b) (with Sch. 2)
F4Words in s. 257(5) substituted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 26 para. 12(5)