Taxation of Chargeable Gains Act 1992 Schedule 7ZB paragraph 3

Amount of value

Paragraph 3 of Schedule 7ZB sets out how to calculate the amount of value received by an investor for the purposes of the investors' relief value-received disqualification rules.

• The method of calculating the value received depends on the type of transaction — for example, repurchases of shares or securities are valued at the greater of the amount received and market value, liabilities are valued at the amount of the liability, and loans are valued net of any repayments made before the shares were issued.
• A receipt of insignificant value is one that does not exceed £1,000, and such receipts are generally disregarded for the purposes of the disqualification rules.
• However, if at any time in the period beginning one year before the shares are issued and ending on the issue date, arrangements exist for the investor to receive any value from the issuing company during the restriction period, no amount of value received can be treated as insignificant — even if it is £1,000 or less.
• References to the investor include any associate of the investor, and references to the company include any person connected with the company, in each case at any time during the restriction period.