Taxation of Chargeable Gains Act 1992 Schedule 5AZA paragraph 4

Second condition: equal entitlement to new units

Paragraph 4 sets out the second condition that must be met for a scheme of reconstruction involving collective investment schemes to qualify for tax relief: all participants holding the same type of units must have the same entitlement to acquire new units.

• Every participant holding relevant units (or units of the same class) must have an equal entitlement to acquire units in the successor scheme, schemes, or feeder fund.
• No participant can receive preferential treatment over another participant holding the same type of units when it comes to acquiring units in the new arrangement.
• Where only one original scheme is involved, "relevant units" means the units of that scheme, or units of the particular class involved in the reconstruction.
• Where more than one original scheme is involved, "relevant units" means units in any of those original schemes, or units of the particular class in any of those schemes involved in the reconstruction.