Corporation Tax Act 2009 section 527

Shares with guaranteed returns: income-producing assets for the increasing value condition

Section 527(4), as modified by Schedule 2 paragraph 77, adjusts the definition of "income-producing assets" used in the increasing value condition for periods before 16 May 2008.

• This transitional provision applies only to times before 16 May 2008.
• It modifies the definition of "income-producing assets" within the increasing value condition in section 527(4).
• For those earlier periods, income-producing assets include any share that meets (or would meet) the redemption return condition, unless it is excluded solely because it is an excepted share under section 529(1)(c).
• From 16 May 2008 onwards, the standard wording of section 527(4)(c) applies without this substitution.