Section 257R — Income Tax Act 2007: Disposal of whole or part of the investment

Disposal of whole or part of the investment 257R 1 This section applies if—

a the investor disposes of the whole or part of the investment, b the disposal takes place before the shorter applicable period ends, c SI relief is attributable to the shares, or qualifying debt investments, disposed of, d the disposal is not to an individual who—

i is the spouse, or civil partner, of the investor, and ii is living together with the investor at the time of the disposal, and e the disposal does not occur as a result of the investor's death.

2 If the disposal is not made by way of a bargain at arm's length, the SI relief attributable to those shares, or qualifying debt investments, must be withdrawn.

3 If the disposal is made by way of a bargain at arm's length, the SI relief attributable to those shares or qualifying debt investments must—

a if it is greater than the amount given by the formula set out in subsection (4), be reduced by that amount, and b in any other case, be withdrawn.

4 The formula is— C × R where— C is the amount or value of the consideration received by the investor for the shares or qualifying debt investments, and R is the SI rate for the tax year for which the SI relief was given.