[CG53712] Qualifying corporate bonds: share reorganisations: the effect of section 116: QCBs to shares and non QCBs
CG53710-CG53711 explains the position where the new asset consists of a qualifying corporate bond (QCB) but the old asset does not, see CG53710 for an explanation of the terms old and new asset. This paragraph explains the effect of TCGA 1992 section 116 where the old asset consists of a QCB but the new asset does not, and there was a relevant transaction, ie. sections 127 – 130 would apply. In such a situation it is possible that any gain that accrued on the QCB to the date of the relevant transaction could effectively be brought into charge when there is a disposal of the new, chargeable asset.