# Taxation of Chargeable Gains Act 1992, Paragraph 9

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

(1) This paragraph applies if section 135 or 136 (company reconstructions) applies in relation to shares to which deferral relief, but not relief under Part 5 of ITA 2007 (or Chapter 3 of Part 7 of the Taxes Act), is attributable.
(1A) Paragraphs 3 and 4 of this Schedule have effect as if section 135 or 136 did not apply in relation to the shares.
(2) Sub-paragraph (1A) does not apply if—
(a) the new holding consists of new ordinary shares (“the new shares") carrying no present or future preferential right to dividends or to a company’s assets on its winding up and no present or future right to be redeemed,
(b) the new shares are issued after the end of the relevant period, and
(c) the condition in sub-paragraph (4) below is satisfied.
(3) Sub-paragraph (1A) does not apply if paragraph 8 applies in relation to the shares.
(4) The condition is that at some time before the issue of the new shares—
(a) the company issuing them issued eligible shares, and
(b) a certificate in relation to those eligible shares was issued by the company for the purposes of section 306(2) of the Taxes Act or section 203(1) of ITA 2007 (as applied by paragraph 6 above) and in accordance with section 306 of the Taxes Act or sections 204 and 205 of ITA 2007 (as so applied).
(5) In sub-paragraph (2) above “new holding” shall be construed in accordance with sections 126, 127, 135 and 136.

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Source: https://www.legislation.gov.uk/ukpga/1992/12/schedule/5B/paragraph/9 (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/schedule-5B/paragraph-9
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.