Section 169VT — Taxation of Chargeable Gains Act 1992: Election to disapply section 127

Election to disapply section 127 169VT 1 This section applies where—

a there is—

i a reorganisation (within the meaning of section 126), or ii an exchange of shares which is treated as such a reorganisation by virtue of section 135 or 136, and b the original shares and the new holding 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 investors' relief may be made as if the reorganisation or exchange of shares involved a disposal of the original shares;

and if such a claim is made section 127 and sections 169VN to 169VS do not apply.

3 Any election under this section must be made—

a if the reorganisation or exchange of shares would (apart from section 127) involve a disposal by the trustees of a settlement, jointly by—

i the trustees, and ii the person who if the disposal were made would be the eligible beneficiary in respect of the disposal, within the meaning given by section 169VH(2) (or, if more than one, all the persons who would be such eligible beneficiaries);

b otherwise, by the individual concerned.

4 Any 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 or exchange of shares takes place.

5 In this section “the original shares” and “the new holding” have the meaning given by section 126.