Finance Act 2009

Conditions for company

3 (1) Section 106 (conditions for company) is amended as follows.

(2) In subsection (2), insert at the end “(subject to section 109 and regulations under section 116)”.

(3) In subsection (7)(a)(ii)—

(a) for “fixed-rate” substitute “relevant”, and

(b) omit “(within the meaning of paragraph 2 of Schedule 25 to ICTA (acceptable distribution policy))”.

(4) After subsection (7) insert—

“(7A) For the purposes of Condition 5—

(a) “relevant preference share” means a share which is a “relevant preference share” for the purposes of Schedule 18 to ICTA (group relief) or would be but for the fact that it carries a right of conversion into shares or securities in the company, and

(b) a share is “non-voting” if it carries no right to vote at a general meeting of the company or if it carries a right to vote which is contingent on the non-payment of a dividend and which has not become exercisable.”

(5) The amendment made by sub-paragraph (2) is to be treated as always having had effect.

(6) The amendments made by sub-paragraphs (3) and (4) have effect in relation to accounting periods ending on or after 22 April 2009.