Taxation of Chargeable Gains Act 1992 (c. 12)

Part IV U.K. Shares, securities, options etc.

Modifications etc. (not altering text)

C1 Pt. IV: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

Chapter III U.K. Miscellaneous provisions relating to commodities, futures, options and other securities

[F1 151BB CITR: rights issues etc U.K.

(1) If—

(a) an individual or company (“the investor”) holds shares in the CDFI which are of the same class and held in the same capacity (“the existing holding”),

(b) there is a reorganisation affecting the existing holding as a result of an allotment which—

(i) falls within section 126(2)(a) (an allotment of shares or debentures in respect of and in proportion to an original holding), and

(ii) is not an allotment of corresponding bonus shares,

(c) immediately after the reorganisation, CITR is attributable to the shares included in the existing holding or the shares or debentures allotted in respect of those shares, in respect of one or more years of assessment or accounting periods, and

(d) if CITR is attributable to the shares included in the existing holding at that time, those shares have been held by the investor continuously from the time they were issued until the reorganisation,

sections 127 to 130 (treatment of share capital following a reorganisation) do not apply in relation to the existing holding.

(2) Section 116(10) (reorganisations, conversions and reconstructions) does not apply in any case where the old asset consists of shares held (in the same capacity) by the investor—

(a) that have been held by the investor continuously from the time they were issued until the relevant transaction, and

(b) to which CITR is attributable immediately before that transaction.

In this subsection “old asset” and “the relevant transaction” have the meaning given by section 116.

(3) For the purposes of subsection (1)—

• “corresponding bonus shares” means bonus shares that—

  (a)

  are issued in respect of shares included in the existing holding, and

  (b)

  are in the same company, are of the same class, and carry the same rights as, those shares,

• “reorganisation” has the meaning given in section 126.

(4) The following provisions of this Act have effect subject to this section—

• section 116 (reorganisations, conversions and reconstructions);

• Chapter 2 of Part 4 (reorganisation of share capital, conversion of securities etc).

(5) In this section “the CDFI” is to be read—

(a) if the investor is an individual, in accordance with section 334(2) of ITA 2007,

(b) if the investor is a company, in accordance with [F2 section 219(2) of CTA 2010].]

Textual Amendments

F1 S. 151BB inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 317 (with Sch. 2)

F2 Words in s. 151BB(5)(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. 237 (with Sch. 2)