60(1)For the purposes of this Part of this Schedule there is a “” where arrangements are made in accordance with which a company (“the new company”) acquires all the shares (“”) in another company (“the old company”) and the following conditions are met.
(2)The conditions are—
(a)that the consideration for the old shares consists wholly of the issue of shares (“”) in the new company;
(b)that new shares are issued in consideration of old shares only at times when there are no issued shares in the new company other than—
(i)subscriber shares, and
(ii)new shares previously issued in consideration of old shares;
(c)that the consideration for new shares of each description consists wholly of old shares of the corresponding description;
(d)that new shares of each description are issued to the holders of old shares of the corresponding description in respect of, and in proportion to, their holdings; and
(e)that by virtue of section 127 of the M1Taxation of Chargeable Gains Act 1992 as applied by section 135(3) of that Act, the exchange of shares is not treated as involving a disposal of the old shares or an acquisition of the new shares.
(3)For the purposes of this paragraph old shares and new shares are of a corresponding description if, on the assumption that they were shares in the same company, they would be of the same class and carry the same rights.
(4)In this paragraph references to “shares", except in the expression “subscriber shares", include securities.
Marginal Citations