A share reconstruction may involve the issue of both shares and qualifying corporate bonds (QCBs) in exchange for shares in the original company. The effect of TCGA 1992 section 116 is that the provisions of section 127-131 are only turned off for that element of the exchange that relates to the issue of QCBs, eg. section 116(4) defines the new asset only in terms of QCBs and section 116(5) disapplies sections 127-131 by reference to the new asset.

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