809Z8Meaning of “the disposal proceeds”

1

In this Chapter, in relation to a sale or other disposal, “the disposal proceeds” means—

a

the consideration for the disposal, less

b

any agency fees that are deducted before the consideration is paid or otherwise made available to or for the benefit of the person making the disposal (“the transferor”) or any other relevant person.

2

The following rules apply in determining the consideration for the disposal.

3

If the consideration is provided in the form of anything other than money, the amount of the consideration is the market value of the thing at the time of the disposal.

4

If the disposal is made other than by way of a bargain made at arm's length, the disposal is deemed to be made for a consideration equal to the market value, immediately before the disposal, of the thing being disposed of.

5

Without limiting the generality of subsection (4), a disposal made to another relevant person or to a person connected with a relevant person is treated in all cases as made other than by way of a bargain at arm's length.

6

In subsection (1), “agency fees” means fees and other incidental costs of the disposal that are charged to the transferor by any person by or through whom the disposal is effected, but excluding any such fees or costs that—

a

are charged to the transferor by another relevant person, or

b

are to be passed on to or otherwise applied for the benefit of a relevant person.

7

The exclusion mentioned in subsection (6) does not apply to the extent that the fees or costs—

a

relate to a service actually provided by the relevant person to the transferor in connection with effecting the disposal, and

b

do not exceed the amount that would be charged for that service if it were provided in the ordinary course of business and on arm's length terms.

809Z9Taking proceeds etc offshore or investing them

1

This section applies to a provision of this Chapter that is satisfied if something (for example, disposal proceeds) is taken offshore or used by a relevant person to make a qualifying investment.

2

Things are to be regarded as “taken offshore” if (and only if) they are taken outside the United Kingdom such that, on leaving the United Kingdom, they cease to be available—

a

to be used or enjoyed in the United Kingdom by or for the benefit of a relevant person, or

b

to be used or enjoyed in any other way that would count as remitting income or gains to the United Kingdom.

3

If—

a

the thing required to be taken offshore or invested is money, and

b

it is paid temporarily into an account pending satisfaction of the provision,

the provision is satisfied only if the money actually taken offshore or invested is taken from the same account.

4

If the thing required to be taken offshore or invested is something in money's worth, the provision may be satisfied—

a

by taking the thing offshore or investing it, or

b

by taking offshore or investing money or other property of the equivalent value.

5

“The equivalent value” is the market value of the thing in money's worth, assessed as at the date of the sale or other disposal in relation to which the provision is triggered.

6

If the consideration for a disposal is deemed under section 809Z8(4), the provision may be satisfied by taking offshore or investing money or other property of a value equal to—

a

the amount of the deemed consideration, less

b

any agency fees (within the meaning of section 809Z8) that are deducted before the actual consideration is paid or otherwise made available to or for the benefit of a relevant person.

7

Subsections (4)(b) and (6) do not apply in the case of other property of the equivalent value if the other property is—

a

exempt property under section 809X,

b

consideration for the disposal of any such exempt property, or

c

consideration for the disposal of all or part of the holding (see section 809VC) relating to a qualifying investment.

8

Money or other property taken offshore or invested in accordance with subsection (4)(b) or (6) is to be treated for the purposes of this Chapter—

a

as deriving from the thing required to be taken offshore or invested, and

b

as having the same composition of kinds of income and capital as that thing.

9

A provision to which this section applies may be satisfied—

a

by taking the whole thing offshore or investing the whole thing, or

b

by taking one part offshore and investing the other part.

10

References in this section to something being “invested” are to something being used by a relevant person to make a qualifying investment.

11

The provisions to which this section applies include section 809VB(2) but in that case—

a

disregard references in this section to investment, and

b

the assessment date for the purposes of subsection (5) is the date of the relevant event (see section 809VA(3)(b)).

809Z10General interpretation

In this Chapter—

• “the business investment provisions” means sections 809VA to 809VO;

• “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

• “market value” has the same meaning as in TCGA 1992 (see in particular sections 272 and 273 of that Act);

• “qualifying investment” has the meaning given by section 809VC (and references to making a qualifying investment are to be read in accordance with that section);

• “relevant person” has the meaning given by section 809M;

• “the remittance basis user”, in relation to income or chargeable gains of an individual, means that individual.