Interpretation of section 730A

New clause 10 – in the House of Commons at 4:20 pm on 3rd April 1995.

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730B.—(l) For the purposes of section 730A agreements are related if they are entered into in pursuance of the same arrangement (regardless of the date on which either agreement is entered into).

(2) References in section 730A to buying back securities—

  1. (a) shall include references to buying similar securities; and
  2. (b) in relation to a person connected with the original owner, shall include references to buying securities sold by the original owner or similar securities,
notwithstanding (in each case) that the securities bought have not previously been held by the purchaser; and references in that section to repurchase or to a repurchaser shall be construed accordingly.

(3) In section 730A and this section 'securities' has the same meaning as in section 737A.

(4) For the purposes of this section securities are similar if they entitle their holders—

  1. (a) to the same rights against the same persons as to capital, interest and dividends, and
  2. (b) to the same remedies for the enforcement of those rights,
notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred.

(5) Section 839 (connected persons) applies for the purposes of section 730A."

(2) In section 729 of that Act (sale and repurchase of securities), after subsection (5) there shall be inserted the following subsection— (5A) This section shall not apply where section 737A applies; and this section shall be disregarded in determining whether the condition in subsection (2)(b) of that section is fulfilled in any case.

(3) In subsections (3)(b), (9) and (11)(c) of section 737C of that Act (adjustment of repurchase price), for "the Tax Acts other than section 737A and of the 1992 Act" there shall be substituted, in each case "section 730A"; and after subsection (11) of that section there shall be inserted the following subsection— (11A) The deemed increase of the repurchase price which is made for the purposes of section 730A by subsection (3)(b), (9) or (11)(c) above shall also have effect—

  1. (a) for all the purposes of the Tax Acts, other than section 737A.
  2. (b) in cases where section 263A of the 1992 Act does not apply, for the purposes of the 1992 Act,
wherever in consequence of that increase there is for the purposes of section 730A no difference between the sale price and the repurchase price.

(4) After section 263 of the Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—