Part IV Shares and Securities
Rules of identification
C2C366 Disposal on or before day of acquisition. C1
1
The following provisions shall apply where securities of the same kind are acquired or disposed of by the same person on the same day and in the same capacity—
a
all the securities so acquired shall be treated as acquired by a single transaction and all the securities so disposed of shall be treated as disposed of by a single transaction, and
C4b
all the securities so acquired shall, so far as their quantity does not exceed that of the securities so disposed of, be identified with those securities.
2
Where the quantity of the securities so disposed of exceeds the quantity of the securities so acquired, then so far as the excess—
a
is not required by paragraph 2(2), 3(3) or 13(3) of Schedule 5 to this Act to be identified with securities held on or acquired before 6th April 1965, and
b
cannot be treated under section 65 above as diminishing a holding,
it shall be treated as diminishing a quantity subsequently acquired, and a quantity so acquired at an earlier date, rather than one so acquired at a later date.
3
Shares shall not be treated for the purposes of this section as being of the same kind unless they are treated as being of the same class by the practice of a recognised stock exchange in the United Kingdom or elsewhere or would be so treated if dealt with on such a stock exchange.
4
In this section “securities” includes shares and any assets dealt with without identifying the particular assets disposed of or acquired, F2and in the case of gilt-edged securities subsection (2) above has effect subject to section 68 below.