Part 4Loss relief

Chapter 6Losses on disposal of shares

Qualifying trading companies: supplementary

146Substitution of new shares for old shares

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.