Textual Amendments
F1Sch. 5B inserted (with effect in accordance with Sch. 13 para. 4(4) of the amending Act) by Finance Act 1995 (c. 4), Sch. 13 para. 4(3)
Textual Amendments
F2Sch. 5B paras. 7-9 and cross-headings inserted (with effect in accordance with s. 74(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 34
9(1)Subject to sub-paragraphs (2) and (3) below, sections 135 and 136 shall not apply in respect of shares to which deferral relief, but not relief under Chapter III of Part VII of the Taxes Act, is attributable.U.K.
(2)Sub-paragraph (1) above shall not have effect to disapply section 135 or 136 where—
(a)the new holding consists of new ordinary shares (“the new shares") carrying no present or future preferential right to dividends or to a company’s assets on its winding up and no present or future right to be redeemed,
(b)the new shares are issued after the end of the relevant period, and
(c)the condition in sub-paragraph (4) below is satisfied.
(3)Sub-paragraph (1) above shall not have effect to disapply section 135 where shares to which deferral relief, but not relief under Chapter III of Part VII of the Taxes Act, is attributable are exchanged for other shares in such circumstances as are mentioned in paragraph 8(1) above.
(4)The condition is that at some time before the issue of the new shares—
(a)the company issuing them issued eligible shares, and
(b)a certificate in relation to those eligible shares was issued by the company for the purposes of subsection (2) of section 306 of the Taxes Act (as applied by paragraph 6 above) and in accordance with that section (as so applied).
(5)In sub-paragraph (2) above “new holding” shall be construed in accordance with sections 126, 127, 135 and 136.]]