SCHEDULES

Corporation tax: carry forward of reliefU.K.

11(1)Section 244 (disposal of securities or shares during 5 year period) is amended as follows.U.K.

(2)For subsection (3) substitute—

“(3)Subsections (3A) to (3H) apply if—

(a)the disposal is a qualifying disposal, and

(b)the investor has made a claim under section 220 in respect of the former investment for an accounting period (“period X”).

(3A)Subsection (3B) applies if the total of the following CITR does not exceed A—

(a)any CITR attributable to the former investment in respect of period X given under section 220, and

(b)any CITR attributable to the former investment in respect of later accounting periods given under section 220A where period X is the accounting period mentioned in section 220A(1)(a).

(3B)All CITR falling within subsection (3A)(a) or (b) must be withdrawn.

(3C)If the total of the CITR falling within subsection (3A)(a) or (b) exceeds A, that total must be reduced by A.

(3D)For the purposes of subsection (3C) CITR given in a later accounting period must be reduced before CITR given in an earlier accounting period.

(3E)For the purposes of subsections (3A) and (3C) “A” is an amount equal to 5% of the amount or value of the consideration (if any) which the investor receives for the former investment.

(3F)If—

(a)the total of the CITR falling within subsection (3A)(a) or (b)(“B”) is less than

(b)the amount (“C”) which is equal to 5% of the invested amount in respect of the former investment for period X,

“A” is to be reduced by multiplying it by the fraction—