SCHEDULES
SCHEDULE 2Approved share incentive plans
Part 11Supplementary provisions
Company reconstructions
86
1
In this Part of this Schedule a “company reconstruction” means a transaction to which this paragraph applies.
2
This paragraph applies to a transaction which occurs in relation to any of a participant’s plan shares (“the original holding”) and—
a
results in a new holding being equated with the original holding for the purposes of capital gains tax, or
b
would have that result but for the fact that what would be the new holding consists of or includes a qualifying corporate bond.
3
But where an excluded issue of shares is made—
a
that issue of shares does not by itself count as a transaction within sub-paragraph (2); and
b
if made as part of a transaction within that sub-paragraph (that is, as part of a company reconstruction), the shares issued are to be regarded as not forming part of the new holding.
4
An “excluded issue of shares” means an issue of shares of any of the following descriptions (in respect of which a charge to income tax arises)—
a
redeemable shares or securities issued as mentioned in section 209(2)(c) of ICTA (distributions);
b
share capital issued in circumstances such that section 210(1) of ICTA (bonus issues) applies;
c
share capital to which section 249 of ICTA (stock dividends) applies F1that is issued in a case where section 410(2) or (3) of ITTOIA 2005 applies .