Commentary on Sections Overview Overview Section 710: Treatment of shares where annual acquisition limit exceeded
2715.This section is based on paragraph 8 of Schedule 15B to ICTA and provides an ordering rule to determine which shares are treated as within the annual acquisition limit (referred to as “exempt shares”) if that limit is exceeded in a tax year.
2716.Subsection (2) provides the basic rule, that shares are treated as exempt shares if immediately after their acquisition the annual limit is not exceeded.
2717.Subsection (4) deals with the situation where the limit is exceeded on a day in which shares of different descriptions are acquired. In that case the appropriate proportion of shares of each description are treated as exempt shares.