41(1)Where—
(a)the investor holds shares in or debentures of a company (“company A”),
(b)there is a reconstruction or amalgamation affecting that holding (“the existing holding”),
(c)immediately before the reconstruction or amalgamation, relief is attributable to the shares or debentures comprised in the existing holding in respect of one or more tax years or accounting periods, and
(d)the shares or debentures comprised in the existing holding have been held by the investor continuously from the time they were issued until the reconstruction or amalgamation,
sections 135 and 136 of the 1992 Act (share exchanges and company reconstructions) shall not apply in respect of the existing holding.
(2)Sub-paragraph (1)(a) applies only where the shares or debentures are held by the investor in the same capacity.
(3)For the purposes of sub-paragraph (1) a “reconstruction or amalgamation” means an issue by a company of shares in or debentures of that company in exchange for or in respect of shares in or debentures of company A.
(4)The following provisions of the 1992 Act have effect subject to this paragraph—
section 116 (reorganisations, conversions and reconstructions);
Chapter 2 of Part 4 (reorganisation of share capital, conversion of securities etc).