Paragraph 5A F1

(1)

Paragraph 5(2) to (6) above apply where there occurs in relation to any of a participant’s shares (“the original holding”) a relevant transaction which would result in a new holding being equated with the original holding for the purposes of capital gains tax, were it not for the fact that what would be the new holding consists of or includes a qualifying corporate bond; and “relevant transaction” here means a transaction mentioned in Chapter II of Part IV of the 1992 Act.

(2)

In paragraph 5(2) to (6) above as applied by this paragraph—

(a)

references to a company reconstruction are to the transaction referred to in sub-paragraph (1) above;

(b)

references to the new holding are to what would be the new holding were it not for the fact mentioned in sub-paragraph (1) above;

(c)

references to the original holding shall be construed in accordance with sub-paragraph (1) above (and not paragraph 5(1));

(d)

references to shares, in the context of the new holding, include securities and rights of any description which form part of the new holding.

(3)

In sub-paragraph (1) above “qualifying corporate bond” shall be construed in accordance with section 117 of the 1992 Act.

Annotations

Textual amendments

F1: Sch. 10 para. 5A inserted (with effect in accordance with s. 101(8) of the amending Act) by Finance Act 1994 (c. 9), s. 101(4) (with s. 101(13))

Notes on Schedule 10

Modifications

C1: Sch. 10 excluded (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 238(2)(c)(4), 289 (with ss. 60, 101(1), 171, 201(3))
C2: Sch. 10 modified (29.4.1996) by Finance Act 1996 (c. 8), s. 116(3)
C3: Sch. 10 continued (6.4.2003 with effect in accordance with s. 723(1) of the affecting Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 418(3) (with Sch. 7)