Commentary

D6.205 Share for share exchange—scope

Corporate tax
Corporate tax | Commentary

D6.205 Share for share exchange—scope

Corporate tax | Commentary

Exchange of securities

D6.205 Share for share exchange—scope

General rules on an exchange of securities

Broadly, an exchange of securities (sometimes referred to as a share for share or paper for paper exchange) is where one company ('company B') acquires shares in, or debentures of, another company ('company A') and in exchange issues its own shares or debentures.

A share exchange may be a scheme of reconstruction or amalgamation. However, a share exchange only has to satisfy the conditions in TCGA 1992, s 135 and does not necessarily have to be a scheme of reconstruction.

An exchange of securities1

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