Corporation Tax Act 2010 section 77

Section 76: supplementary

Section 77 provides supplementary rules for section 76 (disposal of shares forming part of a mixed holding), dealing with how share reorganisations and nominee or bare trustee holdings are treated when determining whether shares qualify for loss relief.

• Where a share reorganisation occurs and is treated as not involving a disposal for capital gains purposes, the new shares are deemed to have been acquired at the same time as the original shares for the purposes of section 76.
• This rule applies whether the reorganisation treatment arises directly under the capital gains legislation or through any other enactment relating to chargeable gains.
• Shares held or disposed of by a nominee or bare trustee on behalf of a company are treated as held or disposed of by the company itself for section 76 purposes.
• The terms "new holding" and "original shares" carry the same meanings as in the capital gains reorganisation provisions.