Effect of earlier no-gain/no-loss transfer
(1) For the purposes of this paragraph shares are 'derived' from other shares only where -
(a) one holding of shares is treated by virtue of section 584 as the same asset as another, or
(b) there is a sequence of 2 or more of the occurrences mentioned in paragraph (a).
(2) The period for which a company has held shares is treated as extended by any earlier period during which the shares concerned, or shares from which they are derived, were held -
(a) by a company from which the shares concerned were transferred to the company on a no-gain/no-loss transfer, or
(b) by a company from which the shares concerned, or shares from which they are derived, were transferred on a previous no-gain/no-loss transfer -
(i) to a company within clause (a), or
(ii) to another company within this clause.
(3) For the purposes of subparagraph (2) a 'no-gain/no-loss transfer' means a disposal and corresponding acquisition that, by virtu
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