For sub-paragraphs (2) to (4) of paragraph 4 there shall be substituted the following sub-paragraphs—

“(2)

Any question for the purposes of capital gains tax as to whether any shares to which a disposal (including a disposal within marriage) relates are shares to which deferral relief is attributable shall be determined in accordance with sub-paragraphs (3) and (4) below.

(3)

Where shares of any class in a company have been acquired by an individual on different days, any disposal by him of shares of that class shall be treated as relating to those acquired on an earlier day rather than to those acquired on a later day.

(4)

Where shares of any class in a company have been acquired by an individual on the same day, any of those shares disposed of by him shall be treated as disposed of in the following order, namely—

(a)

first any to which neither deferral relief nor relief under Chapter III of Part VII of the Taxes Act is attributable;

(b)

next any to which deferral relief, but not relief under that Chapter, is attributable;

(c)

next any to which relief under that Chapter, but not deferral relief, is attributable; and

(d)

finally any to which both deferral relief and relief under that Chapter are attributable.

(4A)

The following, namely—

(a)

any shares to which deferral relief, but not relief under Chapter III of Part VII of the Taxes Act, is attributable and which were disposed of to an individual by a disposal within marriage, and

(b)

any shares to which relief under that Chapter is attributable and which were transferred to an individual as mentioned in section 304 of that Act,

shall be treated for the purposes of sub-paragraphs (3) and (4) above as acquired by him on the day on which they were issued.

(4B)

Chapter I of Part IV of this Act has effect subject to sub-paragraphs (2) to (4A) above.

(4C)

Sections 104, 105 and 106A shall not apply to shares to which deferral relief, but not relief under Chapter III of Part VII of the Taxes Act, is attributable.”