Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 197: Minor definitions
777.This section defines terms which are used in the sections and clarifies what counts as payment for shares.
778.The section is derived from section 162(1), (9) and (10) of ICTA and contains new drafting material.
779.Subsection (2) makes the meaning of “acquisition” very wide to discourage schemes intended to avoid chargeability under this Chapter. The meaning of “market value” is as in Part 8 of TCGA 1992.The wording of the definition has been changed to bring it into line with definitions of market value used elsewhere in this Act. See Note 23 in Annex 2.
780.Subsection (3) ensures that payment for shares made in kind or by any other means is included and that legal liability to make it is not needed for it to count as a payment.