4.—(1) In a case involving redemption arrangements, section 263A of TCGA 1992 applies with the following modifications.
(2) Subsection (1A)(1) applies as if it provided that the interim holder shall be treated for the purposes of capital gains tax as acquiring the securities—
(a)on the occasion of the redemption of the securities, and
(b)for an amount equivalent to the proceeds of redemption.
(3) Subsection (1B) applies as if it provided that the original owner shall be treated for the purposes of capital gains tax as disposing of the securities—
(a)on the occasion of the redemption of the securities, and
(b)for an amount equivalent to the proceeds of redemption.
Subsections (1A) and (1B) of section 263A were inserted by paragraph 12(3) of Schedule 14 to the Finance Act 2007.