On 3 March 2015, regulations were made to prevent capital reduction schemes of arrangement being used to achieve a stamp duty saving on takeovers.
The regulations amend section 641 of the Companies Act 2006, prohibiting a company from reducing its share capital as part of a scheme that enables another person to acquire shares in the company. It remains possible to effect a reduction scheme in order to insert a new holding company as part of a restructuring.
The regulations came into force on 4 March 2015.
The regulations can be viewed here