Finance Act, 1993

Amendment of section 90 (arrangements reducing value of company shares) of Finance Act, 1989.

126.—(1) Section 90 of the Finance Act, 1989 , is hereby amended—

(a) in subsection (1), by the deletion of “or 17” in paragraph (a) of the definition of “specified amount”, and

(b) by the insertion after subsection (11) of the following subsection:

“(12) Where, immediately after and as a result of an arrangement, shares in a company have been redeemed, the redeemed shares shall, for the purpose of the references to property representing shares in subsection (1) and subsection (2), (3) or (4), except a reference in relation to which the redeemed shares are actually represented by property, be deemed, immediately after the arrangement, to be represented by property, and the market value of the property so deemed to represent the redeemed shares shall be deemed to be nil.”.

(2) This section shall apply where—

(a) as respects subsection (1) (a), the time referred to in paragraph (a) of the definition of “specified amount” is on or after the 24th day of February, 1993, and

(b) as respects subsection (1) (b), the arrangement to which the said subsection relates is made on or after the 6th day of May, 1993.