Section 116B — Corporation Tax Act 2009: Shares beginning or ceasing to be shares to which section 523 of CTA 2009 applies

Shares beginning or ceasing to be shares to which section 523 of CTA 2009 applies 116B 1 If at any time section 523 of CTA 2009 (application of Part 5 of that Act to certain shares as rights under a creditor relationship) begins or ceases to apply in the case of a share held by the investing company it is treated for the purposes of this Act—

a as having disposed of the share immediately before that time for consideration of an amount equal to its fair value at that time, and b as having immediately reacquired it for consideration of the same amount.

2 In this section— “ fair value ” has the same meaning as in Part 5 of CTA 2009, (loan relationships) (see section 313(6) of that Act), and “ investing company ” has the same meaning as it has for the purposes of Chapter 7 of Part 6 of that Act (shares with guaranteed returns) (see section 522(3) of that Act).