SCHEDULES
SCHEDULE 3Entrepreneurs' relief
PART 1Reduction in lifetime limit
Anti-forestalling: reorganisations of share capital
4
1
This paragraph applies where—
a
on or after 6 April 2019 but before 11 March 2020, there is a reorganisation, and
b
on 11 March 2020—
i
the company is the relevant individual's personal company and is either a trading company or the holding company of a trading group, and
ii
the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group.
2
In sub-paragraph (1) “the relevant individual” means—
a
where a claim under section 169M of TCGA 1992 is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying beneficiary;
b
where a claim under that section is made by an individual, the individual.
3
Where an election in respect of the reorganisation is made under section 169Q of TCGA 1992 (reorganisations: disapplication of section 127) on or after 11 March 2020, the disposal of the original shares is to be treated for the purposes of paragraph 2 as taking place at the time of the election and not at the time of the reorganisation.
4
References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of section 135 or 136 of TCGA 1992 (but see paragraph 5).