CG53015 - Substantial shareholdings exemption: introduction - the legislation

FA02/S44, TCGA92/S192A, FA02/SCH8 & TCGA92/SCH7AC

Section 44 and Schedule 8 Finance Act 2002 introduced the substantial shareholdings exemption legislation. Subsection (1) of section 44 Finance Act 2002 inserted a new section 192A into TCGA 1992. Section 192A TCGA 1992 simply provides that Schedule 7AC TCGA 1992 has effect.

Section 44(2) Finance Act 2002 provides that Schedule 8 Finance Act 2002 has effect. That Schedule is in two Parts:

• Part 1 of Schedule 8 contains paragraph 1 of that Schedule which inserted Schedule 7AC into TCGA 1992. Schedule 7AC contains the detailed rules of the substantial shareholdings exemption regime.
• Part 2 of Schedule 8 contains paragraphs 2 to 5 of that Schedule. They make the consequential amendments to other legislation that are needed because of the substantial shareholdings exemption (see CG53250).

Subsections (3) to (5) of section 44 Finance Act 2002 contain the commencement rules for the substantial shareholdings legislation (see CG53065).