IFM40750 | Treatment of certain payments: transactions in securities

FA22/SCH2/PARA49

PARA 49 ensures that the transactions in securities rules contained in ITA07/PT13/CH1 do not apply in many cases where a QAHC is involved.

With the exception below, where the rules would only apply because of a person being party to one or more transactions in QAHC securities, they are disapplied.

The transactions in securities rules apply as normal to persons who are party to one or more transactions in QAHC securities where those securities are ‘qualifying employment-related securities. This may be the case where the holder of the securities is an employee of the QAHC or an investee company of the QAHC. Holders of qualifying employment-related securities are not entitled to receive share buyback proceeds from a QAHC as capital, so it is necessary to apply the transactions in securities rules normally to them to prevent avoidance via forms of indirect buyback.