Section 146 — Income Tax Act 2007: Substitution of new shares for old shares

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).