Schedules

SCHEDULE 1Minor and consequential amendments

Part 1Income and Corporation Taxes Act 1988

147

(1)

Amend Schedule 25 (cases where section 747(3) of ICTA does not apply) as follows.

(2)

In paragraph 2—

(a)

in sub-paragraph (7)(a) for the words “fixed-rate preference shares as defined in paragraph 1 of Schedule 18” substitute “ restricted preference shares as defined in section 160(2) to (7) of CTA 2010 as modified by sub-paragraph (7A) ”, and

(b)

after sub-paragraph (7) insert—

“(7A)

The modification referred to in sub-paragraph (7)(a) is, in section 160 of CTA 2010, the substitution for subsection (6) of—”

“(6)

Condition D is that the shares do not carry any right to dividends other than dividends which—

(a)

are of a fixed amount or are at a fixed percentage rate of the nominal value of the shares, and

(b)

represent no more than a reasonable commercial return on the new consideration mentioned in subsection (3).””

(3)

In paragraph 12(3) for the words from “section 838” to the end substitute“section 1154 of CTA 2010 has effect with the omission of the following—

(a)

in subsection (2), the words “or indirectly”, and

(b)

subsection (5).”