New Clause 20 - Shares acquired on public offer

Finance Bill – in a Public Bill Committee at 10:30 am on 24th June 2004.

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'(1) Section 421F of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (exclusion from Chapters 2 to 4 of Part 7 of shares acquired under terms of offer to the public) is amended as follows.

(2) In subsection (1), for ''Chapters 2 to 4'' substitute ''Chapters 2, 3 and 3C''.

(3) After that subsection insert—

''(1A) But subsection (1) does not disapply those Chapters if the main purpose (or one of the main purposes)—

(a) of the arrangements under which the right or opportunity under which the shares were acquired, or

(b) for which the shares are held,

is the avoidance of tax or national insurance contributions.''

(4) This section has effect on and after 18th June 2004 and applies in relation to shares acquired before that date as well as in relation to those acquired on or after that date.

(5) For the purposes of the application of Chapter 3B of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (securities with artificially enhanced market value) by reason of subsections (2) and (4) in relation to shares acquired before that date, section 446O of that Act (meaning of ''relevant period'') has effect as if they were acquired on that date.'.—[Dawn Primarolo.]

Brought up, read the First and Second time, and added to the Bill.