Part V Transfer of business assets
F1 Chapter 3Entrepreneurs’ relief
169QReorganisations: disapplication of section 127
1
This section applies where—
a
there is a reorganisation (within the meaning of section 126), and
b
the original shares and the new holding (within the meaning of that section) would fall to be treated by virtue of section 127 as the same asset.
2
If an election is made under this section, a claim for entrepreneurs' relief may be made as if the reorganisation involved a disposal of the original shares; and if such a claim is made section 127 does not apply.
3
An election under this section must be made—
a
if the reorganisation would (apart from section 127) involve a disposal of trust business assets, jointly by the trustees and the qualifying beneficiary, and
b
otherwise, by the individual.
4
An election under this section must be made on or before the first anniversary of the 31 January following the tax year in which the reorganisation takes place.
5
The references in this section to a reorganisation (within the meaning of section 126) includes an exchange of shares or securities which is treated as such a reorganisation by virtue of section 135 or 136.
Pt. 5 Ch. 3 inserted (with effect in accordance with Sch. 3 para. 5 of the amending Act) by Finance Act 2008 (c. 9), Sch. 3 para. 2 (with Sch. 3 paras. 6-8)