12 |
(d) Loans to acquire shares |
ITEPA chapter 7 may apply if the loan is on advantageous terms or is written off (§§17A.4.3 and 4). However chapter 8, which created a notional loan in certain situations (see §17A.4.5), and 9, which applied where shares were disposed of more than market value, have been repealed by FA 2003 their scope having been absorbed into the new rules. |
16A.2 FA 2003—Scope and Background |
FA 2003 provides a major overhaul of the legislation in this area, the only regret being that it haven’t done in time to be taken into account properly in the ITEPA 2003. As already seen there are three principal changes. The first is the extension of the rules to cover all securities and not just shares. The second is a new set of chapters, 3A–3D, dealing with acquisitions above or below market value and the manipulation of values. The third is the extension of PAYE and NICs to produce a uniform application across the rules. |
16.A.2.1 Securities |
The 2003 rules affect securities and not just shares. Securities are defined to cover not only shares and debentures but also warrants certificates futures and rights under contracts for differences.23 The Treasury is given power to amend this part of the act by statutory instrument.24 Market value is defined by reference to the CGT rules and envisages consideration in non-monetary form.25 |
Relevant Acquisitions sections 421B–421L provide some overarching rules for the seven chapters in chapters 2–4 §16A.3, including therefore chapters 3A–3D §16A.4. So |