71(1)Sub-paragraph (2) applies where shares would, in the absence of paragraph 82 (which disapplies sections 135 and 136 of the 1992 Act in respect of shares to which investment relief is attributable), be the subject of an exchange or arrangement which—U.K.
(a)is of the kind mentioned in section 135 or 136 of the 1992 Act (company reconstructions etc.), and
(b)would involve a disposal of shares, by reason of—
(i)section 137(1) of that Act (schemes with tax avoidance purpose), or
(ii)paragraph 96(2)(b) (company treated as disposing of shares in the case of certain [F1schemes of reconstruction] involving tax avoidance).
(2)Where this sub-paragraph applies no loss relief may be obtained in respect of any allowable loss incurred on the disposal.
(3)Where a claim is made under this Part in respect of a loss accruing on the disposal of shares, section 30 of the 1992 Act (value-shifting) shall have effect in relation to the disposal as if for the references in subsections (1)(b) and (5) of that section to a tax-free benefit there were substituted references to any benefit whether tax-free or not.
Textual Amendments
F1Words in Sch. 15 para. 71(1)(b)(ii) substituted (24.7.2002 with effect as mentioned in Sch. 9 para. 7(1) of the amending Act) by 2002 c. 23, s. 45, Sch. 9 Pt. 2 para. 6(2)