Section 169VR — Taxation of Chargeable Gains Act 1992: New shares issued on scheme of reconstruction

New shares issued on scheme of reconstruction 169VR 1 This section applies where—

a section 136 applies in relation to an arrangement between a company (“company A”) and the persons holding shares, or any class of shares, in company A, under which another company (“company B”) issues shares to those persons, and b under section 136(2)(a) those persons are treated as exchanging shares in company A for the shares held by them in consequence of the arrangement.

2 For the purposes of sections 169VN to 169VP—

a companies A and B are to be treated as if they were the same company, and b the exchange of shares is to be treated as if it were a reorganisation of that company's share capital.

3 In the following provisions of this Chapter, any reference to an exchange of shares includes anything that section 136(2)(a) treats as an exchange of shares.