Company reconstructionsU.K.
86(1)In this Part of this Schedule a “company reconstruction” means a transaction to which this paragraph applies.U.K.
(2)This paragraph applies to a transaction which occurs in relation to any of a participant’s plan shares (“the original holding”) and—
(a)results in a new holding being equated with the original holding for the purposes of capital gains tax, or
(b)would have that result but for the fact that what would be the new holding consists of or includes a qualifying corporate bond.
(3)But where an excluded issue of shares is made—
(a)that issue of shares does not by itself count as a transaction within sub-paragraph (2); and
(b)if made as part of a transaction within that sub-paragraph (that is, as part of a company reconstruction), the shares issued are to be regarded as not forming part of the new holding.
(4)An “” means an issue of shares of any of the following descriptions (in respect of which a charge to income tax arises)—
(a)redeemable shares or securities issued as mentioned in [F1paragraph C or D in section 1000(1) of CTA 2010] (distributions);
(b)share capital issued in circumstances such that [F2section 1022(3) of CTA 2010] (bonus issues) applies;
(c)share capital to which [F3section 410 of ITTOIA 2005 (stock dividends) applies that is issued in a case where subsection (2) or (3) of that section applies.]
Textual Amendments
F1Words in Sch. 2 para. 86(4)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 396(6)(a) (with Sch. 2)
F2Words in Sch. 2 para. 86(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 396(6)(b) (with Sch. 2)
F3Words in Sch. 2 para. 86(4)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 396(6)(c) (with Sch. 2)