Section 211 | Meaning of “disposal-related obligation”

(1)For the purposes of this Chapter an obligation is a “disposal-related obligation”, in relation to a qualifying investment, if condition A or B is met in relation to it.

(2)The obligation may be to any person (whether or not the company making the disposal or a person connected with it).

(3)Condition A is that it is reasonable to suppose that the disposal of the qualifying investment to the charity would not have been made in the absence of the obligation.

(4)Condition B is that the obligation (whether in whole or in part) relates to, is framed by reference to, or is conditional on the charity receiving, the qualifying investment or a disposal-related investment.

(5)In applying condition A all the circumstances must be taken into account (including in particular the difference in the value of the net benefit to the charity calculated under section 209(1)(a) and that value calculated under section 209(1)(b) on the assumption that the obligation under consideration is a disposal-related obligation).

(6)In subsection (4) “disposal-related investment” means any of the following—

(a)an asset of the same class or description as the qualifying investment (irrespective of size, quantity or amount),

(b)an asset derived from, or representing, the qualifying investment, whether in whole or in part and whether directly or indirectly, and

(c)an asset from which the qualifying investment is derived, or which the qualifying investment represents, whether in whole or in part and whether directly or indirectly.

(7)In this section “obligation” includes a reference to each of the following—

(a)a scheme, arrangement or understanding of any kind, whether or not legally enforceable, and

(b)a series of obligations (whether or not between the same parties).