F1SCHEDULE 5B Enterprise investment scheme: re-investment
F2Reorganisations
7
(1)
Where an individual holds shares which form part of the ordinary share capital of a company and include shares of more than one of the following kinds, namely—
(a)
shares to which deferral relief and relief under Chapter III of Part VII of the Taxes Act F3or Part 5 of ITA 2007 are attributable,
(b)
shares to which deferral relief but not relief under that Chapter F4or that Part is attributable, and
(c)
shares to which deferral relief is not attributable,
then, if there is within the meaning of section 126 a reorganisation affecting those shares, section 127 shall apply (subject to the following provisions of this paragraph) separately to shares falling within paragraph (a), (b) or (c) above (so that shares of each kind are treated as a separate holding of original shares and identified with a separate new holding).
(2)
Where—
(a)
an individual holds shares (“the existing holding") which form part of the ordinary share capital of a company,
(b)
there is, by virtue of any such allotment for payment as is mentioned in section 126(2)(a), a reorganisation affecting the existing holding, and
(c)
immediately following the reorganisation, the existing holding or the allotted shares are shares to which deferral relief is attributable,
sections 127 to 130 shall not apply in relation to the existing holding.