Section 169K — Finance Act 2008: Disposal associated with relevant material disposal

Disposal associated with relevant material disposal 169K 1 There is a disposal associated with a relevant material disposal if conditions A, B and C are met.

2 Condition A is that an individual makes a material disposal of business assets which consists of—

a the disposal of the whole or part of the individual's interest in the assets of a partnership, or b the disposal of (or of interests in) shares in or securities of a company.

3 Condition B is that the individual makes the disposal as part of the withdrawal of the individual from participation in the business carried on by the partnership or by the company or (if the company is a member of a trading group) a company which is a member of the trading group.

4 Condition C is that, throughout the period of 1 year ending with the earlier of—

a the date of the material disposal of business assets, and b the cessation of the business of the partnership or company, the assets which (or interests in which) are disposed of are in use for the purposes of the business.

5 For the purposes of this Chapter the disposal mentioned in Condition B is the disposal associated with a relevant material disposal.