ihta84/s98.- Effect of alterations of capital, etc

Alterations of capital, etc.

[1975 s.39(5);
1976 s.118(7).]

98.-(1) Where there is at any time-

(a) an alteration in so much as a close company's share or loan capital as does not consist of [quoted shares or quoted securities ¹ ]

(b) an alteration in any rights attaching to [unquoted shares in or unquoted debentures of a close company ² ],

the alteration shall be treated as having been made by a disposition made at that time by the participators, whether or not it would fall to be so treated apart from this section, and shall not be taken to have affected the value immediately before that time of the [unquoted shares or unquoted debentures ³ ].

[1975 s.39(6).]

(2) In this section "alteration" includes extinguishment.

[(3) The disposition referred to in subsection (1) above shall be taken to be one which is not a potentially exempt transfer ⁴ ].

1 1987 Sch.8, para.2(a), with effect from 17 March 1987. Originally "shares or securities quoted on a recognised stock exchange".

2 1987 Sch.8, para.2(b), with effect from 17 March 1987. Originally "shares in or debentures of a close company which are not so quoted".

3 1987 Sch.8, para.2(c), with effect from 17 March 1987. Originally "shares or debentures not so quoted".

4 1986 Sch.19, para.20, with effect from 18 March 1986.