Taxation of Chargeable Gains Act 1992 Schedule 11 paragraph 16

Qualifying corporate bonds, company reorganisations, share conversions etc.

Paragraph 16 of Schedule 11 provides transitional rules ensuring that the consolidation of capital gains legislation into Part IV of the 1992 Act does not change the tax treatment of company reorganisations, share capital reductions, securities conversions or amalgamations that occurred before the Act came into force.

• Part IV of the Act (covering shares, securities and company reorganisations) is subject to these transitional provisions.
• The replacement of earlier legislation by Chapter II of Part IV does not alter the tax rules that applied to any reorganisation, share capital reduction, securities conversion or company amalgamation that took place before the Act came into force.
• This preservation of existing law specifically includes the rules determining whether new assets arising from such an event are treated as the same asset as the original holding of shares, securities or other assets.
• For any disposal or exchange on or after 6 April 1992, certain amendments made by the Finance Acts of 1989, 1990 and 1991 to the qualifying corporate bonds rules in the Finance Act 1984 are treated as always having had effect.