Commentary on Sections Overview Overview Section 407: Events counting as recovery of capital for section 406
1145.This section explains which events count as the recovery of capital for the purposes of section 406. It is based on section 363(2) of ICTA.
1146.Subsection (1) identifies the cases relating to an investment in a company (whether a close company or employee-controlled), subsection (2) identifies the cases relating to an investment in a partnership and subsection (3) identifies the cases relating to an investment in a co-operative.
1147.Subsection (4) provides that if there is a sale or assignment that is not at arm’s length, market value consideration is used instead of actual proceeds. Section 1008(1) provides that in Scotland “assignment” means “assignation”.