Section 169Q — Taxation of Chargeable Gains Act 1992: Reorganisations: disapplication of section 127

Reorganisations: disapplication of section 127 169Q 1 This section applies where—

a there is a reorganisation (within the meaning of section 126),

and b the original shares and the new holding (within the meaning of that section) would fall to be treated by virtue of section 127 as the same asset.

2 If an election is made under this section, a claim for business asset disposal relief may be made as if the reorganisation involved a disposal of the original shares;

and if such a claim is made section 127 does not apply.

3 An election under this section must be made—

a if the reorganisation would (apart from section 127) involve a disposal of trust business assets, jointly by the trustees and the qualifying beneficiary, and b otherwise, by the individual.

4 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 reorganisation takes place.

5 The references in this section to a reorganisation (within the meaning of section 126) includes an exchange of shares or securities which is treated as such a reorganisation by virtue of section 135 or 136.