Paragraph 5 Held over gains

For section 140(6B) (postponement of charge on transfer of assets to non-resident company) M1 substitute —

“(6B)

If securities are transferred by a transferor as part of the process of a merger to which section 140E applies—

(a)

the transfer shall be disregarded for the purposes of subsection (4), and

(b)

the transferee shall be treated as if it were the transferor in relation to—

(i)

any subsequent disposal of the securities, and

(ii)

any subsequent disposal by the transferee of assets to which subsection (5) applies.

(6C)

In subsection (6B) “transferor” and “transferee” have the meaning given by section 140E(9).”.