An exchange of shares for ordinary and preference shares was not subject to anti-avoidance provisions that would have disapplied share-for-share exchange treatment as a reconstruction for the purposes of corporation tax on chargeable gains.  

Summary 

An exchange of shares for ordinary and preference shares was not subject to the anti-avoidance provisions in TCGA 1992, s 137(1) that would have disapplied share-for-share exchange treatment as a reconstruction in TCGA 1992, s 135 for the purposes of corporation tax on chargeable gains. 

Background 

The appellant company (‘E’) was part of a joint venture with another company (‘DL’) and others. Another company (‘DHPLC’) indirectly held 100% of DL.  

E and DL held shares