Clause 49

in subsection (11), after “14EA,”, insert “14EB,”;

in subsection (11), after “14M,”, insert “14MA,”;

in subsection (17)(a), replace “ordinary shares” with “ordinary shares or preference shares (or both)”;

after subsection (18), insert —“(18A) Section 13W(1A) applies for the purpose of determining the exempt income of a company (including a non‑umbrella VCC but excluding an umbrella VCC) from the disposal of shares in a VCC (whether or not an umbrella VCC) (called X) with the following modifications:

all references to preference shares in X are omitted;

the reference in section 13W(1A)(b)(ii) to the paid‑up share capital of ordinary shares and preference shares in X is to the paid‑up share capital of ordinary shares in X.”;

after subsection (20), insert —“(20A) For the purposes of subsection (17A) —“applicable accounting principles”, in relation to a company, means —

the accounting principles adopted by the company; or

if the company is not required to comply with any accounting principles in preparing its financial statements — the International Financial Reporting Standards; “preference shares”, in relation to a company, means only preference shares that are accounted for as equity by the company under the applicable accounting principles.”;

in subsection (28), in the subsection heading, replace “and 92J” with “, 92J and 92L”;

in subsection (28A), after “Section 92J”, insert “or 92L”;

in subsection (28A), after “section 92J(7)”, insert “or 92L(7) (as the case may be)”; and

in subsection (28A)(b), in the definition of “local employee”, in paragraph (b), after “2023”, insert “(for the purposes of section 92J) or 2024 (for the purposes of section 92L)”.