Section 138ZC — Taxation of Chargeable Gains Act 1992: Election to disapply section 135 or 136

Election to disapply section 135 or 136 138ZC 1 This section applies where section 138ZB would, but for an election under this section, apply in relation to the issue by a company of shares in or debentures of that company in exchange for, or in respect of, shares in or debentures of another company.

2 The person to whom the shares or debentures are issued may elect for section 135 or 136 not to apply to the issue, and accordingly—

a the exchange or scheme of reconstruction in question will not be treated as a reorganisation within the meaning of section 126, and b section 138ZB will not apply in relation to the issue.

3 An election under this section must be made on or before the first anniversary of the 31 January following the tax year in which the shares or debentures are issued.