| Commentary

3.2 Reconstruction involving shares

| Commentary

3.2 Reconstruction involving shares

A reconstruction under the Taxation of Chargeable Gains Act 1992 Section 1351 involves an exchange of securities for those in another company. It applies where:

  1. 3.2.1

        a purchasing company (company B) holds, or will, in consequence of the exchange, hold more than 25% of the ordinary share capital of target company (company A);

  2. 3.2.2

        company B issues the shares or debentures in exchange for shares as a result of a general offer:

    1. (a)

          made to members of company A or any class of them, and

    2. (b)

          made in the first instance on a condition such that

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