I7.381C APR clawback and replacement property
Where the original property is not still owned by the transferee at the transferor's death (see I7.381A for the significance of this), the relief may still be available in relation to property which represents it, as set out below.
First, there are provisions concerning shares owned by the transferee immediately before the transferor's death, or his own earlier death, which represent the property he acquired under the transfer. If they would under any of TCGA 1992, ss 126–136 (reorganisation of share capital etc) be identified with the original property or part of it, they are treated as if they were the original property and the transferee's period of ownership of the original property is treated as including his period of ownership of the shares1.
Shares issued in consideration of the transfer of agricultural property consisting of the original property (or part of it) are treated in the same way2. See Example 1 below. It is not entirely clear that these provisions are cumulative (ie that shares resulting from a reorganisation of shares originally issued in consideration of the agricultural property originally transferred would be treated as the original property) but it is thought that they are. They are cumulative with the rollover provisions described below3.
Secondly, there is provision for rollover from the original property to new agricultural property ('the replacement property'). There can be different rollovers at different times for different parts of the original property, but no