Finance Act, 1997
Amendment of Chapter VIII (taxation of acquisition by a company of its own shares) of Part I of Finance Act, 1991 . |
39.—(1) Chapter VIII of Part I of the Finance Act, 1991 , is hereby amended— | |
(a) in section 59— | ||
(i) in subsection (1)— | ||
(I) by the insertion, after the meaning assigned to “control” of the following definition: | ||
“‘group’ means a company which has one or more 51 per cent. subsidiaries together with those subsidiaries;”, | ||
and | ||
(II) in the definition of “trading group” by the deletion of the words after “trades”, | ||
and | ||
(ii) in subsection (3), by the substitution for “section 61” of “section 60A or 61”, | ||
and | ||
(b) by the insertion, after section 60, of the following section: | ||
“Purchase of own shares by a quoted company. | ||
60A.—(1) Notwithstanding any provision of Part IX of the Act of 1976, references in the Tax Acts to distributions of a company shall be construed so as not to include references to a payment made by a quoted company on the redemption, repayment or purchase of its own shares. | ||
(2) References in subsection (1) to a quoted company shall include references to a company which is a member of a group of which a quoted company is a member.”. | ||
(2) This section shall have effect as respects payments made on or after the 26th day of March, 1997. |