Part 6Venture capital trusts
Chapter 6Supplementary and general
Conversion of shares etc and company reorganisations
330Power to facilitate company reorganisations etc involving exchange of shares
1
The Treasury may by regulations make provision for cases where—
a
a holding of shares or securities that meets the requirements of Chapter 4 is exchanged for other shares or securities,
b
the exchange is made for genuine commercial reasons and does not form part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax, and
c
the new shares or securities do not meet some or all of the requirements of Chapter 4,
providing that the new shares or securities are to be treated as meeting those requirements.
F71A
The Treasury may by regulations make provision for the purposes of this Part for cases where—
a
a holding of shares or securities that does not meet the requirements of Chapter 4 is exchanged for other shares or securities not meeting those requirements, and
b
the exchange is made for genuine commercial reasons and does not form part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.
2
The references in F6subsections (1) and (1A) to an exchange of shares or securities include any form of company reorganisation or other arrangement which involves a holder of shares in or securities of a company receiving other shares or securities—
a
whether the original shares or securities are transferred, cancelled or retained, and
b
whether the new shares or securities are in or of the same or another company.
3
F2Regulations under subsection (1) must specify—
a
the cases in which, and conditions subject to which, they apply,
b
which requirements of Chapter 4 are to be treated as met, and
c
the period for which those requirements are to be treated as met.
F53A
Regulations under subsection (1A) may, among other things, make provision—
a
for the new shares or securities to be treated in any respect in the same way as the original shares and securities for any period;
b
as to when the new shares or securities are to be regarded as having been acquired;
c
as to the valuation of the original or the new shares or securities.
4
F1Regulations under this section may contain such administrative provisions (including provision for advance clearances) as appear to the Treasury to be necessary or appropriate.
F45
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6
Regulations under this section —
a
may make different provision for different cases,
b
may contain incidental, supplemental, consequential and transitional provision and savings, and
c
F3in the case of regulations under subsection (1) may include provision having retrospective effect.