Section 381E | Exception for returns from certain shares ^F1

(1)This Chapter does not apply in relation to an arrangement that produces a return for a person, in relation to an amount, which is economically equivalent to interest where—

(a)the arrangement involves only excluded shares, and

(b)no relevant arrangement has been made (by any person) in relation to those excluded shares.

(2)For the purposes of this section shares are excluded shares if they are admitted to trading on a regulated market and—

(a)they were issued before 6 April 2013, or

(b)if issued on or after that date, at the time of issue no arrangements involving only the shares would produce a return, in relation to an amount, which is economically equivalent to interest.

(3)In subsection (2) “regulated market” means—^F2

(a)a UK regulated market within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments,^F2

(b)an EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, and^F2

(c)a Gibraltar regulated market within the meaning given by Article 26(11)(b)(i) of that Regulation.^F2F3

(4)For the purposes of this section an arrangement is relevant, in relation to excluded shares, where—

(a)the arrangement is made on or after 6 April 2013, and

(b)it is reasonable to assume that the main purpose, or one of the main purposes, of the arrangement is to secure that arrangements involving only the shares produce a return, in relation to an amount, which is economically equivalent to interest.