Were it not for the special rules below, it would be possible for gains accruing on securities to be permanently deferred on a conversion by virtue of provisions rolling them into the gilt-edged securities which are then exempt (see ¶559-000). Therefore, the usual rules which apply to equate a new holding received on a conversion of securities with the original securities (see ¶560-800) do not apply where gilt-edged securities are exchanged for shares or securities which are compulsorily acquired under any enactment (TCGA 1992, 134(1)).

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