Taxation of Chargeable Gains Act 1992 Schedule 7ZB paragraph 2

"Receives value"

Section 7ZB paragraph 2 defines what it means for an investor to "receive value" from a company for the purposes of the investors' relief disqualification rules, and sets out which types of payment are excluded from this definition as "qualifying payments".

• An investor receives value from the company through a wide range of transactions, including share buybacks, debt repayments linked to share acquisitions, loans or advances not yet repaid, asset transfers at off-market prices, benefits or facilities provided, and any non-qualifying payments
• Value is also received where a person connected with the company buys the investor's shares or securities in the company, or pays the investor for giving up rights to such shares or securities
• Qualifying payments — which do not count as receiving value — include reasonable employment remuneration, reimbursement of necessary business expenses, commercial-rate interest, normal investment returns, payments at market value for goods or assets, reasonable rent, and the discharge of ordinary trade debts
• The rules apply broadly: references to the investor include their associates, references to the company include connected persons during the restriction period, and payments made indirectly or for the investor's benefit are caught