This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Share exchange was not subject to anti-avoidance provisions

By Mark McLaughlin, August 2021

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

Subscribe to the McLaughlin’s Tax Case Library to get instant access
to the Tax Case Library.
14 day free trial , 90 day money back guarantee
Subscribe

Related or similar articles

Expenditure on preparatory work was eligible for capital allowances
By Mark McLaughlin, May 2025
Contractors could claim non-liability for CIS amounts not deducted from payments to subcontractor
By Mark McLaughlin, August 2024
Reliance on a trusted employee was not a reasonable excuse for CIS compliance failures
By Mark McLaughlin, February 2024
Documents requested in HMRC information notice were subject to legal professional privilege
By Mark McLaughlin, May 2023
Company Advances Amounted To Loan Relationships
By Mark McLaughlin, October 2018