Finance Act 1999 (c. 16)

(The document as of February, 2008)

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(5) For the purposes of paragraph 3 above the period of two years mentioned in sub-paragraph (4) of that paragraph shall be deemed, in the case of any new shares, to expire at the same time as it would have expired (or by virtue of this sub-paragraph would have been deemed to expire) in the case of the matching old shares.

(6) Subject to sub-paragraph (7) below, where--

(a) there is an exchange under the arrangements of any new shares for any old shares, and

(b) those old shares are shares in relation to which the requirements of paragraphs 6 and 8 above were (or were deemed to be) satisfied to any extent immediately before the exchange,

those requirements shall be deemed, at all times after that time, to be satisfied to the same extent in relation to the matching new shares.

(7) Where there is a time following any exchange under the arrangements of any new shares for any old shares when (apart from the arrangements) the requirements of paragraph 6 above would have ceased under--

(a) sub-paragraph (2) of that paragraph, or

(b) this sub-paragraph,

to be satisfied in relation to those old shares, those requirements shall cease at that time to be satisfied in relation to the matching new shares.

(8) For the purposes of paragraph 7 above any new shares acquired under the arrangements shall be deemed to represent an investment which--

(a) raised the same amount of money as was raised (or, by virtue of this sub-paragraph, is deemed to have been raised) by the issue of the matching old shares, and

(b) raised that amount by an issue of shares in the new company made at the time when the issue of the matching old shares took place (or, as the case may be, is deemed to have taken place).

(9) In determining whether the requirements of paragraph 9 above are satisfied in relation to the old company or the new company at a time in the period for giving effect to the arrangements, both--

(a) the arrangements themselves, and

(b) any exchange of new shares for old shares that has already taken place under the arrangements,

shall be disregarded.

(10) For the purposes of paragraph 10B above the value of the new shares, both immediately after the time of their acquisition and immediately after the time of any subsequent relevant event occurring by virtue of the arrangements, shall be taken to be the same as the value, when last valued in accordance with that paragraph, of the old shares for which they are exchanged.

(11) Nothing in this paragraph shall deem any of the requirements of this Schedule to be satisfied in relation to any new shares unless the matching old shares were first issued to the trust company and have been held by that company from the time when they were issued until they are acquired by the new company.

(12) References in this paragraph to the period for giving effect to the arrangements are references to the period which--

(a) begins with the time when those arrangements first came into existence; and

(b) ends with the time when the new company completes its acquisition under the arrangements of all the old shares.

(13) If, at any time after the arrangements first came into existence and before the new company has acquired all the old shares, the arrangements--

(a) cease to be arrangements for the acquisition of all the old shares by the new company, or

(b) cease to be arrangements for an acquisition falling within sub-paragraph (2) above,

this paragraph shall not deem any requirement of this Schedule to be satisfied, and sub-paragraph (10) above shall not apply, in the case of any new shares at any time after the arrangements have so ceased.

(14) Subject to sub-paragraph (15) below, references in this paragraph, except in the expression "subscriber shares", to shares in a company include references to any securities of that company.

(15) For the purposes of this paragraph, a relevant security of the old company shall not be treated as a security of that company if--

(a) the arrangements do not provide for the acquisition of the security by the new company; or

(b) such treatment prevents sub-paragraph (1)(b) above from being satisfied in connection with the arrangements.

(16) In sub-paragraph (15) above "relevant security" means an instrument which is a security for the purposes of this Schedule by reason only of section 842AA(12).

(17) For the purposes of this paragraph--

(a) old shares and new shares are of a corresponding description if, were they shares in the same company, they would be of the same description; and

(b) old shares and new shares are matching shares in relation to each other if the old shares are the shares for which those new shares are exchanged under the arrangements.

Conversion of convertible shares and securities

10D.--(1) This paragraph applies where--
(a)
shares have been issued to the trust company by virtue of the exercise by that company of any right of conversion attached to other shares, or securities, held by that company ("the convertibles");
(b)
the shares so issued are in the same company as the convertibles to which the right was attached;
(c)
the convertibles to which the right was attached were first issued to the trust company and were held by that company from the time they were issued until converted; and
(d)
the right was attached to the convertibles when they were first so issued and was not varied before it was exercised.

(2) Sub-paragraphs (5) to (8) of paragraph 10C above shall apply in relation to the exchange of convertibles for shares by virtue of the exercise of the right of conversion as if--

(a) that exchange were an exchange under any such arrangements as are mentioned in that paragraph of new shares for old shares; and

(b) the references in those sub-paragraphs and sub-paragraph (17)(b) of that paragraph to the arrangements were references to the provision conferring the right of conversion.

(3) For the purposes of paragraph 10B above the value of the new shares immediately after the time of their acquisition by the trust company shall be taken to be the same as the value, when last valued in accordance with that paragraph, of the convertibles for which they are exchanged. "

(3) In paragraph 13 of Schedule 28B, at the beginning of sub-paragraph (1) there shall be inserted "Subject to paragraph 10C(15) above,".

(4) In section 842AA (venture capital trusts), after subsection (5) there shall be inserted the following subsections--

" (5AA) For the purposes of subsection (2)(b) to (d) above where--

(a) any shares ("new shares") are exchanged for other shares ("old shares") under arrangements in relation to which paragraph 10C of Schedule 28B applies, and

(b) those arrangements have not ceased by virtue of sub-paragraph (13) of that paragraph to be arrangements by reference to which requirements of that Schedule are deemed to be satisfied,

the value of the new shares, both at the time of their acquisition and immediately after any subsequent addition to a holding of the new shares that is made under those arrangements, shall be taken to be the same as the value, when last valued in accordance with subsection (5) above, of the old shares for which they are exchanged.

(5AB) References in subsection (5AA) above to shares in a company include references to any securities of that company.

(5AC) For the purposes of subsection (2)(b) to (d) above, where--

(a) shares ("new shares") are issued to a company by virtue of the exercise by that company of any right of conversion attached to other shares, or securities, held by that company ("convertibles"), and

(b) paragraph 10D of Schedule 28B applies in relation to the issue of the new shares,

the value of the new shares at the time of their acquisition shall be taken to be the same as the value, when last valued in accordance with subsection (5) above, of the convertibles for which they are exchanged. "

(5) This section--

(a) shall have effect in relation to any arrangements made, and rights of conversion exercised, on or after 16th June 1999; and

(b) shall be deemed to have come into force on that date.

70 Relief on distributions

(1) In Schedule 15B to the Taxes Act 1988 (VCTs: relief from income tax), in paragraph 7 (relief on distributions), in sub-paragraph (3)(a), after "trust," there shall be inserted--

" (ia) were so acquired for bona fide commercial purposes and not as part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax, " .

(2) This section applies in relation to shares acquired on or after 9th March 1999.

Enterprise investment scheme

71 Eligibility for EIS relief

(1) In section 289 of the Taxes Act 1988 (eligibility for EIS relief), in subsection (1A)--

(a) for paragraph (a) there shall be substituted--

" (a) is a company which--

(i) is such a company as is mentioned in section 293(2)(a), and

(ii) if it is a subsidiary of the qualifying company, is a 90 per cent subsidiary of that company, or " ; and

(b) in paragraph (b), for "such a company" there shall be substituted "a company falling within paragraph (a) above".

(2) This section applies in relation to shares issued on or after 6th April 1999.

72 Deferred gains: application of taper relief

(1) After section 150C of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 insert--

" 150D Enterprise investment scheme: application of taper relief

Schedule 5BA to this Act (which provides for the application of taper relief in cases where relief under Schedule 5B, or Chapter III of Part VII of the Taxes Act, applies) shall have effect. "

(2) Schedule 7 to this Act (which inserts Schedule 5BA into that Act) shall have effect.

(3) In consequence of the insertion of Schedule 5BA, in that Act--

(a) in section 2A(8) (qualifying holding period for taper relief), after "that Schedule" insert "and paragraph 3 of Schedule 5BA"; and

(b) in paragraph 2(4) of Schedule A1 (effect of periods not counting for taper relief purposes), after "paragraphs 10 to 12 below" insert "or paragraph 4 of Schedule 5BA".

73 Deferred gains: gain accruing on part disposal, etc

(1) Schedule 8 to this Act (which amends Schedule 5B to the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 in relation to cases where there is a disposal of some, but not all, of the shares to which relief under that Schedule is attributable) shall have effect.

(2) The amendments made by Schedule 8 to this Act have effect in relation to shares issued on or after 6th April 1999.

Chargeable gains

74 Value shifting: tax-free benefits

Schedule 9 to this Act (which makes provision about tax-free benefits in relation to value shifting) shall have effect.

75 Allowable losses where beneficiary absolutely entitled

(1) For subsection (2) of section 71 of the Taxation of Chargeable Gains Act 1992 (allowable losses of trustees treated as transferred to a person becoming absolutely entitled to settled property) there shall be substituted the following subsections--

" (2) Where, in any case in which a person ("the beneficiary") becomes absolutely entitled to any settled property as against the trustee, an allowable loss would (apart from this subsection) have accrued to the trustee on the deemed disposal under subsection (1) above of an asset comprised in that property--

(a) that loss shall be treated, to the extent only that it cannot be deducted from pre-entitlement gains of the trustee, as an allowable loss accruing to the beneficiary (instead of to the trustee); but

(b) any allowable loss treated as accruing to the beneficiary under this subsection shall be deductible under this Act from chargeable gains accruing to the beneficiary to the extent only that it can be deducted from gains accruing to the beneficiary on the disposal by him of--

(i) the asset on the deemed disposal of which the loss accrued; or

(ii) where that asset is an estate, interest or right in or over land, that asset or any asset deriving from that asset.

(2A) In subsection (2) above "pre-entitlement gain", in relation to an allowable loss accruing to a trustee on the deemed disposal of any asset comprised in any settled property, means a chargeable gain accruing to that trustee on--

(a) a disposal which, on the occasion on which the beneficiary becomes absolutely entitled as against the trustee to that property, is deemed under subsection (1) above to have taken place; or

(b) any other disposal taking place before that occasion but in the same year of assessment.

(2B) For the purposes of subsection (2)(b)(ii) above an asset ("the relevant asset") derives from another if, in a case where--

(a) assets have merged,

(b) an asset has divided or otherwise changed its nature, or

the value of the relevant asset is wholly or partly derived (through one or more successive events falling within paragraphs (a) to (c) above but not otherwise) from the other asset.

(2C) The rules set out in subsection (2D) below shall apply (notwithstanding any other rules contained in this Act or in section 113(2) of the [1995 c. 4.] Finance Act 1995 (order of deduction))--

(a) for determining for the purposes of this section whether an allowable loss accruing to the trustee, or treated as accruing to the beneficiary, can be deducted from particular chargeable gains for any year of assessment; and

(b) for the making of deductions of allowable losses from chargeable gains in cases where it has been determined that such an allowable loss can be deducted from particular chargeable gains.

(2D) Those rules are as follows--

(a) allowable losses accruing to the trustee on a deemed disposal under subsection (1) above shall be deducted before any deduction is made in respect of any other allowable losses accruing to the trustee in that year;

(b) allowable losses treated as accruing to the beneficiary under this section, so far as they cannot be deducted in a year of assessment as mentioned in subsection (2)(b) above, may be carried forward from year to year until they can be so deducted; and

(c) allowable losses treated as accruing to the beneficiary for any year of assessment under this section, and allowable losses carried forward to any year of assessment under paragraph (b) above--

(i) shall be deducted before any deduction is made in respect of any allowable losses accruing to the beneficiary in that year otherwise than by virtue of this section; and

(ii) in the case of losses carried forward to any year, shall be deductible as if they were losses actually accruing in that year. "

(2) This section applies in relation to any occasion on or after 16th June 1999 on which a person becomes absolutely entitled to settled property as against the trustee.

76 Concessions that defer a capital gains charge

(1) In Part VIII of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 (supplemental), after section 284 there shall be inserted the following sections--

" 284A Concessions that defer a charge

(1) This section applies where--

(a) a person ("the original taxpayer") has at any time obtained for any chargeable period ("the first chargeable period") the benefit of any capital gains relief to which he had no statutory entitlement;

(b) the benefit of the relief was obtained in reliance on any concession;

(c) the concession was first published by the Board before 9th March 1999 or (having been published on or after that date) replaced a concession satisfying the requirements of this paragraph with a concession to the same or substantially the same effect; and

(d) the concession involved the application (with or without modifications), to a case to which they would not otherwise have applied, of the provisions of any enactment ("the relevant statutory provisions").

(2) This section applies only if, at the time when the original taxpayer obtained the benefit of the relief, the concession was one available generally to any person falling within its terms.

(3) If the benefit obtained for the first chargeable period by the original taxpayer is repudiated for any later chargeable period (whether by the original taxpayer or by another person), the enactments relating to the taxation of chargeable gains shall have effect as if a chargeable gain equal to the amount of that benefit accrued in the later chargeable period to the person repudiating the benefit.

(4) For the purposes of this section--

(a) a capital gains relief for any chargeable period is a relief (of whatever description) the effect of which is that the amount of the chargeable gains taken to have accrued to that person in that period is less than it otherwise would have been; and

(b) the amount of the benefit of any such relief is the amount by which, as a consequence of that relief, those gains are less than they otherwise would have been.

(5) Where, without applying a specific enactment, any concession has the effect that--

(a) any asset is treated as the same as another asset and as acquired as the other asset was acquired,

(b) any two or more assets are treated as a single asset, or

that concession shall be assumed for the purposes of this section to have involved the application, to a case to which it would not otherwise have applied, of the provisions of an enactment to the corresponding effect.

(6) For the purposes of this section the benefit of any relief obtained by the original taxpayer for the first chargeable period is repudiated by a person for a later chargeable period if--

(a) circumstances arise such that, had the equivalent circumstances arisen in the case of the corresponding relief under the relevant statutory provisions, the whole or a part of the benefit of that relief would have fallen to be recouped from that person in the later chargeable period;

(b) apart from this section, the recoupment in the actual circumstances of the whole or a part of the benefit obtained by the original taxpayer is prevented by the fact that the original taxpayer relied on a concession (rather than on the relevant statutory provisions) to obtain that benefit; and

(c) the person from whom, in the equivalent circumstances, the amount of the benefit or any part of it would have fallen to be recouped is not precluded by subsection (8) below from relying on that fact in relation to that amount or part.

(7) For the purposes of this section an amount of the benefit of a capital gains relief is recouped from any person in a chargeable period to the extent that an amount is so brought into account in his case for that period as to secure that--

(a) the amount of his chargeable gains for that period is taken to be more than it otherwise would have been by an amount directly or indirectly representing the whole or a part of the amount of the benefit; or

(b) the amount of his allowable losses for that period is taken to be less than it otherwise would have been by an amount directly or indirectly representing the whole or a part of the amount of the benefit.

(8) Where--

(a) any such circumstances as are mentioned in subsection (6)(a) above have arisen in relation to the relief the benefit of which has been obtained by the original taxpayer,

(b) the person from whom, in the equivalent circumstances, the whole or any part of the amount of the benefit would have fallen to be recouped has accepted that, in the actual circumstances, the whole or a part of the benefit obtained by the original taxpayer may be recouped from him, and

(c) that acceptance is indicated in writing to the Board (whether by the making or amendment of a self-assessment or otherwise),

that person's rights subsequently to amend, appeal against or otherwise challenge any assessment shall not be exercised in any manner inconsistent with his acceptance of that matter (which shall be irrevocable).

(9) In this section "concession" includes any practice, interpretation or other statement in the nature of a concession.

284B Provisions supplementary to section 284A

(1) Chargeable gains that are treated as accruing to any person under section 284A(3) shall not be eligible for taper relief.

(2) The total amount of chargeable gains that are treated as accruing to any person under subsection (3) of section 284A in respect of any such benefit as is referred to in that subsection shall not exceed the amount of that benefit.

(3) Where, after any assessment to tax has been made on the basis that any chargeable gain is treated as having accrued to any person under section 284A(3)--

(a) the person assessed, within any of the periods allowed by subsection (4) below, gives an indication for the purposes of section 284A(8), or

(b) a final determination of the original taxpayer's liability to tax for the first chargeable period is made on the basis that the original taxpayer did not, or was not entitled to, rely on the concession in question,

all such adjustments shall be made (whether by way of assessment, amendment of an assessment, repayment of tax or otherwise) as are necessary to secure that no person is subjected to any greater liability by virtue of section 284A(3) than he would have been had the indication been given, or the final determination made, before the making of the assessment.

(4) The periods allowed by this subsection are--

(a) the period of twelve months beginning with the making of the assessment;

(b) the period within which the person is entitled to amend his self-assessment or company tax return for the chargeable period in which the chargeable gain under section 284A(3) is treated as having accrued to him;

(c) where the person makes a claim for any further relief against the amount that may be recouped from him by virtue of his indication under section 284A(8), the period allowed for making that claim.

(5) Subsection (3) above has effect notwithstanding any time limits relating to the making or amendment of an assessment for any chargeable period. "

(2) Sections 284A and 284B of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 have effect in relation to any case in which the circumstances arising as mentioned in subsection (6)(a) of section 284A are circumstances arising on or after 9th March 1999, whether the benefit mentioned in subsection (1) of that section was obtained as so mentioned before or after the passing of this Act.

Capital allowances

77 Extension of first-year allowances

In section 22(3D) of the [1990 c. 1.] Capital Allowances Act 1990 (first year allowances: transitional relief), for "1st July 1999" there shall be substituted "1st July 2000".

78 First-year allowances for investment in Northern Ireland

(1) In section 22 of the Capital Allowances Act 1990 ("the 1990 Act") (first-year allowances), in subsection (3CC) (which restricts the expenditure on machinery and plant for use in Northern Ireland which is eligible for 100 per cent. allowances), after paragraph (b) there shall be inserted " ; or

(c) expenditure on the provision of a goods vehicle for the purposes of a trade which consists primarily of the conveyance of goods; or

(d) unauthorised expenditure on the provision of machinery or plant for use primarily in--

(i) agriculture, fishing or fish farming, or

(ii) any relevant activity carried out in relation to agricultural produce, fish or any fish product for the purpose of bringing it to market. "

(2) After subsection (3CC) of that section there shall be inserted--

" (3CD) For the purposes of subsection (3CC) above--

(a) expenditure is unauthorised expenditure unless it is authorised, for the purposes of subsection (3CA) above, by the Department of Agriculture for Northern Ireland; and

(b) "relevant activity" means transportation, storage, preparation, processing or packaging.

(3CE) An authorisation given, for the purposes of subsection (3CA) above, by the Department of Agriculture for Northern Ireland--

(a) may be given either specially (that is to say, so as to apply only to a specified item of expenditure or a specified person) or generally (that is to say, so as not only so to apply);

(b) may, if given generally, be modified by that Department; and

(3) In subsection (10) of that section, after "section" there shall be inserted--

" "agriculture" and "agricultural produce" have the same meanings as in section 6 of the [1972 c. 68.] European Communities Act 1972;

"fish" includes shellfish;

"fish farming" means the intensive rearing, on a commercial basis, of fish intended for human consumption;

"fishing" means a trade, or part of a trade, which consists of the catching or taking of fish;

"goods vehicle" has the same meaning as in the [S.I. 1995/2994 (N.I. 18).] Road Traffic (Northern Ireland) Order 1995; " .

(4) In section 22B of the 1990 Act (withdrawal of first-year allowance on change of use)--

(a) in subsection (2)(a), for "the period of two years beginning with the date of the incurring of that expenditure" there shall be substituted "the relevant period"; and

(b) after subsection (2) there shall be inserted--

" (2A) In subsection (2) above "the relevant period" means--

(a) where the expenditure concerned exceeds £3.5 million, the period of five years beginning with the date of the incurring of that expenditure, and

(b) in any other case, the period of two years beginning with that date. "

(5) After section 22B of the 1990 Act there shall be inserted--

" 22C Disclosure of information in connection with first-year allowances

(1) No obligation as to secrecy or other restriction on the disclosure of information imposed by statute or otherwise shall prevent--

(a) the Board or an authorised officer of the Board from disclosing to the Department of Agriculture for Northern Ireland ("the Department") or an authorised officer of the Department, or

(b) the Department or an authorised officer of the Department from disclosing to the Board or an authorised officer of the Board,

information for the purpose of assisting the Board in the carrying out of their functions with respect to claims for capital allowances made under section 22 by virtue of subsection (3CA) of that section or, as the case may be, the Department in the carrying out of its functions under that section.

(2) Information obtained by virtue of a disclosure authorised by this section shall not be disclosed except--

(a) to the Board or the Department or to an authorised officer of the Board or of the Department; or

(b) for the purposes of any proceedings connected with a matter in relation to which the Board or the Department carry out the functions mentioned in subsection (1) above. "

(6) The preceding provisions of this section have effect in relation to every chargeable period ending on or after 12th May 1998.

Pensions and insurance, etc.

79 Sharing of pensions on divorce, etc

Schedule 10 to this Act (which, for purposes connected with the sharing of pensions between ex-spouses, makes provision with respect to pensions and annuities) shall have effect.

80 Purchased life annuities

Section 657(2) of the Taxes Act 1988 (annuities not treated as purchased life annuities within section 656) shall have effect, and shall be deemed always to have had effect, with the substitution of the following paragraph for the "or" at the end of paragraph (d)--

" (da) to any annuity purchased under or for the purposes of a scheme approved by virtue of section 591 or in pursuance of any obligation imposed, or offer or invitation made, under or in connection with any such scheme; " .

81 Acquisitions disregarded under insurance companies concession

(1) This section applies for the purposes of corporation tax in relation to the disposal by a company ("the relevant company") of any asset where--

(a) the asset is one acquired by the relevant company from an insurance company at a time when the relevant company and that insurance company were both members of the same group of companies;

(b) there was an occasion before the disposal (whether the occasion of the transfer of the asset to the relevant company or the occasion of an earlier transfer of the asset) in relation to which the non-statutory arrangements for groups of insurance companies were applied in the case of the transferring company;

(c) the application of those arrangements in relation to that occasion had the effect of preventing the cost of the asset's acquisition by the transferring company ("the previous acquisition") from being brought into account for tax purposes; and

(d) there has not, between that occasion and the making of the disposal, been any relevant event by reference to which the cost of the previous acquisition has been brought into account in computing the profits or losses of any company for tax purposes.

(2) Subject to subsection (5) below, where the computation of the relevant company's profits or losses from any trade requires the cost of the acquisition of the asset by that company to be brought into account in the accounting period in which the disposal takes place, that cost shall be brought into account in that period as if it were an amount equal to the cost of the previous acquisition.

(3) Subject to subsections (4) and (5) below, where--

(a) the asset disposed of represents a creditor relationship,

(b) the disposal is such that paragraph 6 of Schedule 15 to the [1996 c. 8.] Finance Act 1996 (adjustment for pre-commencement trading relationships) would require an amount to be brought into account in the accounting period in which the disposal takes place in any case in which there is, for that relationship, a difference such as is mentioned in sub-paragraph (1) of that paragraph, and

(c) the cost of the previous acquisition is less than the amount which for the purposes of paragraph 5(2) of that Schedule would (apart from this subsection) be the notional closing value of the relationship on 31st March 1996,

the question whether an amount falls to be brought into account in accordance with paragraph 6(2) or (3) of that Schedule, and the amount (if any) falling to be so brought into account, shall be determined as if the notional closing value of the relationship on 31st March 1996 had been equal to the cost of the previous acquisition.

(4) In any case where the asset represents a creditor relationship in relation to which an election under paragraph 6(4) of Schedule 15 to the [1996 c. 8.] Finance Act 1996 has effect--

(a) subsection (3) above and paragraphs (b) and (c) below shall be disregarded in determining the amounts falling to be brought into account under paragraph 6(4) to (7) of that Schedule;

(b) paragraph 6(1) and (2) of that Schedule shall be treated as applying, notwithstanding paragraph 6(4)(a), if, in the case of that relationship, the amount referred to in subsection (3)(c) above exceeds the cost of the previous acquisition; and

(c) the amount falling by virtue of paragraph (b) above to be brought into account in accordance with paragraph 6(2) of that Schedule shall be determined as if the excess referred to in paragraph 6(2)(a) were the excess mentioned in paragraph (b) above.

(5) Where--

(a) there are two or more occasions such as are mentioned in paragraph (b) of subsection (1) above, and

(b) paragraph (d) of that subsection is satisfied in relation to each of them,

subsections (2) to (4) above shall have effect as if the references to the previous acquisition were references to the acquisition which is the previous acquisition in relation to the earliest of those occasions.

(6) In subsection (1)(d) above "relevant event", in relation to any asset, means--

(a) a disposal of the asset; or

(b) any event by reference to which the conditions of the non-statutory arrangements for groups of insurance companies has required the cost of the previous acquisition to be brought into account in computing the profits or losses of any company for tax purposes.

(7) Section 170 of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 (meaning of groups etc.) shall apply for construing references in the preceding provisions of this section to a group of companies as it applies for the purposes of sections 171 to 181 of that Act.

(8) In the preceding provisions of this section--

"creditor relationship" has the same meaning as in Chapter II of Part IV of the Finance Act 1996; and
"insurance company" means an insurance company within the meaning of Chapter I of Part XII of the Taxes Act 1988.

(9) References in this section to an asset shall be construed as if section 473 of the Taxes Act 1988 (cases where different assets are treated as the same) applied for the purposes of this section as it applies for the purposes of that Act; and paragraph 12(2) of Schedule 9 to the [1996 c. 8.] Finance Act 1996 (cases where different companies are treated as the same) shall apply for the purposes of this section as it applies for the purposes of Chapter II of Part IV of that Act of 1996.

(10) In this section any reference to the non-statutory arrangements for groups of insurance companies is a reference to so much of any arrangements made by the Board otherwise than by virtue of an enactment as--

(a) in relation to an accounting period beginning before 1st January 2000--

(i) provided for a single assessment of the trading profits of a group of insurance companies to be made on the principal company of the group; and

(ii) excluded trading profits on intra-group transfers of investments from the group assessment;

(b) contains transitional provision, in connection with the withdrawal of any arrangements falling within paragraph (a) above, for allowing trading profits on intra-group transfers to be excluded from assessments of members of groups of insurance companies that relate to accounting periods beginning on or after 1st January 1999 and before 1st January 2000.

(11) This section--

(a) shall not be construed as requiring any amount representing a gain on the disposal of the asset to be brought into account for tax purposes in so far as an amount representing that gain is or has already been brought into account, as an attributed gain, under any regulations made by virtue of Schedule 16 to the [1993 c. 34.] Finance Act 1993 (Forex transitional provisions); and

(b) shall be without prejudice to any power of the Board apart from this section to enforce any conditions subject to which any relief in accordance with the non-statutory arrangements for groups of insurance companies has been allowed.

(12) This section applies in relation to disposals by the relevant company made in accounting periods beginning on or after 1st January 1999.

82 Lloyd's: members' agent pooling arrangements

(1) This section applies where a member has entered into a members' agent pooling arrangement ("the arrangement").

(2) Subsections (3) to (9) below shall apply for the purpose of determining any liability of the member's to capital gains tax that may arise from transactions effected in pursuance of the arrangement.

(3) The syndicate rights held by the member under the arrangement shall be treated as a single asset acquired by him at the time when he entered into the arrangement; but, subject to subsection (9) below, he shall not be treated as disposing of the asset (in whole or in part) except as mentioned in subsection (6) below.

(4) The member shall be treated as having given, wholly and exclusively for the acquisition of the asset, consideration equal to any amount paid by him on entering into the arrangement.

(5) Any other amount paid by the member under the arrangement shall, on a disposal of the asset, be treated as expenditure incurred wholly and exclusively on the asset for the purpose of enhancing its value and reflected in its state or nature at the time of the disposal.

(6) If an amount is paid to the member at any time under the arrangement, he shall be treated as disposing of the whole asset or, as the case may be, part of the asset at that time for a consideration equal to that amount.

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