(1) In this section -
"new shares" means shares comprised in the new holding which were issued in respect of, or otherwise represent, shares comprised in the original holding;
"the corresponding shares", in relation to any new shares, means those shares in respect of which the new shares were issued or which the new shares otherwise represent.
(2) This section shall apply where there occurs in relation to any of a participant's shares (in this section referred to as "the original holding") a transaction (in this section referred to as a "company reconstruction") which results in a new holding (within the meaning of section 584) being equated with the original holding for the purposes of capital gains tax.
(a) Where shares are issued as part of a company reconstruction in circumstances such that section 131(2) applies, those shares shall be treated for the purposes of this section as not forming part of the new holding.
(b) Nothing in this Chapter shall affect the application of sec
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