SCHEDULES
SCHEDULE 2F4... 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 F2paragraph C or D in section 1000(1) of CTA 2010 (distributions);
b
share capital issued in circumstances such that F3section 1022(3) of CTA 2010 (bonus issues) applies;
c
share capital to which F1section 410 of ITTOIA 2005 (stock dividends) applies that is issued in a case where subsection (2) or (3) of that section applies.
Word in Sch. 2 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 14, 89 (with Sch. 8 paras. 90-96)