# Capital Gains Tax Act 1979 (repealed 6.3.1992), Paragraph 14

Extent: E+W+S+N.I.

(1) For the purposes of this Act, including Chapter II of Part II, it shall be assumed that any shares or securities held by a person on 6th April 1965 (identified in accordance with paragraph 13 above) which, in accordance with Chapter II of Part IV of this Act, are to be regarded as being or forming part of a new holding were sold and immediately re-acquired by him on 6th April 1965 at their market value on that date.
(2) If, at any time after 5th April 1965, a person comes to have, in accordance with the said Chapter II of Part IV, a new holding sub-paragraphs (3) to (5) of paragraph 11 above shall have effect as if—
(a) the new holding had at that time been sold by the owner, and immediately re-acquired by him, at its market value at that time, and
(b) accordingly, the amount of any gain on a disposal of the new holding or any part of it shall be computed—
(i) by apportioning in accordance with paragraph 11 above the gain or loss over a period ending at the said time, and
(ii) by bringing into account the entire gain or loss over the period from that time to the date of the disposal.
(3) This paragraph shall not apply in relation to a reorganisation of a company’s share capital if the new holding differs only from the original shares in being a different number, whether greater or less, of shares of the same class as the original shares.

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Source: https://www.legislation.gov.uk/ukpga/1979/14/schedule/5/paragraph/14 (the official version)
Page: https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992/schedule-5/paragraph-14
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.