Part 4

Loss relief
Chapter 6

Losses on disposal of shares

Qualifying trading companies: supplementary

Substitution of new shares for old shares
146
1
Subsection (2) applies if, in the case of any new shares held by an individual or by a nominee for an individual, the old shares for which they were exchanged were shares—
a
to which EIS relief was not attributable, and
b
which had been subscribed for by the individual.
2
This Chapter has effect in relation to any subsequent disposal or other event as if—
a
the new shares had been subscribed for by the individual at the time when, and for the amount for which, the old shares were subscribed for by the individual,
b
the new shares had been issued by the new company at the time when the old shares were issued to the individual by the old company, and
c
any requirements of this Chapter which were met at any time before the exchange by the old company had been met at that time by the new company.
3
Nothing in subsection (2) applies in relation to section 195(7) as applied by section 137(7) for the purposes mentioned in section 137(8).
S. 146(3) inserted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 16 paras. 11(6), 13