Taxes Consolidation Act, 1997
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Replacement capital. [FA84 s19] |
500.—(1) In this section— | |
“subsidiary” means a subsidiary of a kind which a qualifying company may have by virtue of section 507 ; | ||
“trade” includes any business, profession or vocation, and references to a trade previously carried on include references to part of such a trade. | ||
(2) An individual to whom subsection (3) applies shall not be entitled to relief in respect of any shares in a company where at any time in the relevant period the company or any of its subsidiaries— | ||
(a) begins to carry on, as its trade or as a part of its trade, a trade previously carried on at any time in that period otherwise than by the company or any of its subsidiaries, or | ||
(b) acquires the whole or greater part of the assets used for the purposes of a trade previously so carried on. | ||
(3) This subsection shall apply to an individual where— | ||
(a) any person or group of persons to whom an interest amounting in the aggregate to more than a 50 per cent share in the trade (as previously carried on) belonged at any time in the relevant period is a person or a group of persons to whom such an interest in the trade carried on by the company, or any of its subsidiaries, belongs or has at any such time belonged, or | ||
(b) any person or group of persons who controls or at any such time has controlled the company is a person or a group of persons who at any such time controlled another company which previously carried on the trade, | ||
and the individual is that person or one of those persons. | ||
(4) An individual shall not be entitled to relief in respect of any shares in a company where— | ||
(a) the company comes to acquire all of the issued share capital of another company at any time in the relevant period, and | ||
(b) any person or group of persons who controls or has at any such time controlled the company is a person or a group of persons who at any such time controlled that other company, | ||
and the individual is that person or one of those persons. | ||
(5) For the purposes of subsection (3)— | ||
(a) the person or persons to whom a trade belongs and, where a trade belongs to 2 or more persons, their respective shares in that trade shall be determined in accordance with paragraphs (a) and (b) of subsection (1), and subsections (2) and (3), of section 400 , and | ||
(b) any interest, rights or powers of a person who is an associate of another person shall be treated as those of that other person. |