Section 151 | Personal equity plans.

(1)The Treasury may make regulations providing that an individual who invests under a plan shall be entitled to relief from capital gains tax in respect of the investments.

(2)The provisions of Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans), except sections 694(1) to (2) and 694A(1), shall apply in relation to regulations made under subsection (1) as they apply to regulations made under section 694(1), but with the following modifications—^F1F2F3

(a)any reference to income tax is to be read as a reference to capital gains tax,^F1F3

(aa)section 694A(2) applies also for the purposes of subsection (1) of this section,^F1F3F4

(ab)the reference in section 694A(3) to section 694A(1) is to be read as a reference to paragraph (aa) of this subsection,^F1F3F4

(ac)the reference in section 694A(4)(b)(iii) to the individual's income from investments under the plan being exempt from income tax is to be read as a reference to the individual being entitled to relief from capital gains tax in respect of the investments,^F1F3F4

(b)the reference in section 695A(1) to the case where regulations provide that income of a child from investments under a plan is exempt from income tax is to be read as a reference to the case where regulations provide that a child who invests under a plan is entitled to relief from capital gains tax in respect of the investments,^F1F3

(c)the reference in section 695A(4) to that Chapter is to be read as a reference to this section, and^F1F3

(d)that Chapter has effect as if sections 699(9) and 701(6) were omitted.^F1F3

(3)Regulations under this section may include provision securing that losses are disregarded for the purposes of capital gains tax where they accrue on the disposal of investments on or after 18th January 1988.

(4)Regulations under this section may include provision which, for cases where a person subscribes to a plan by transferring or renouncing shares or rights to shares—^F5

(a)modifies the effect of this Act in relation to their acquisition and their transfer or renunciation; and^F5

(b)makes consequential modifications of the effect of this Act in relation to anything which (apart from the regulations) would have been regarded on or after their acquisition as an indistinguishable part of the same asset.^F5