17U.K.After section 326 insert—
(1)If this section applies, subsections (2) to (6) have effect to determine the extent to which, and the time for which, the following conditions in Chapter 3 are met in relation to the old shares and the new shares—
the investment limits condition (see section 280B);
the permitted maximum age condition (see section 280C);
the no business acquisition condition (see section 280D).
(2)If—
(a)there is an exchange under the arrangements of any new shares for any old shares, and
(b)those old shares are an investment in relation to which the investment limits condition, the permitted maximum age condition or the no business acquisition condition is (or is treated as being) met to any extent,
those conditions are to be treated as met to the same extent in relation to the matching new shares.
See subsections (3) to (6) for further provision about when those conditions are treated as met in relation to the old shares.
(3)If—
(a)the exchange occurs during the period of 5 years beginning with the day after the day on which the old shares were issued, and
(b)those old shares are shares in relation to which section 280B(2)(c) applies,
section 280B(2)(c) is to be treated as applying in relation to the matching new shares.
(4)In determining whether section 280B(2)(c) applies in relation to the old shares—
(a)condition A is treated as met if it would be met if the reference in section 280B(3B)(a)(i) to a company which becomes a 51% subsidiary of the relevant company during the 5-year post-investment period included a reference to a company which becomes a 51% subsidiary of the new company during that period otherwise than as a result of the exchange, and
(b)in relation to investments made or trades transferred at or after the time of the exchange, references to the relevant company in section 280B(3C)(b) and (3F)(a) are to be read as references to the new company.
(5)The permitted maximum age condition is met in relation to the old shares if (and only if) it would be met if—
(a)in section 280C(5)(a)(ii) and (6)(a) the references to relevant investments made in the relevant company included a reference to the relevant investments made in the new company,
(b)in section 280C(7)(d) and (f) the references to the relevant company included a reference to the new company,
(c)in paragraphs (a)(ii) and (b)(iii) of the definition of “the total relevant turnover amount” in section 280C(9) the reference to a company which becomes a 51% subsidiary of the relevant company after the investment date included a reference to a company which becomes a 51% subsidiary of the new company after that date otherwise than as a result of the exchange.
(6)The no business acquisition condition is met in relation to the old shares if (and only if) it would be met if, in section 280D(2), references to the relevant company were read as including a reference to the new company.”