(1) Section 598 of the Principal Act is amended by inserting the following after subsection (7):
(a) In this subsection 'relevant payment' means a payment made by a company on the redemption, repayment or purchase of its own shares which, by virtue of section 176, is not treated as a distribution for the purposes of Chapter 2 of Part 6.
(b) Subsection (2) shall apply where an individual disposes of shares in his or her family company and receives a relevant payment in exchange for that disposal.".
(2) This section applies to disposals made on or after 4 February 2010.