Section 135 TCGA 1992 may apply when a holder of shares or debentures in one company exchanges them for shares or debentures issued by another. When section 135 does apply, the new shares or debentures are treated as the same asset as the original shares or debentures. In other words, there is no disposal for capital gains purposes and any gain or loss latent in the original assets is ‘rolled over’ into the new assets. There are no special rules governing the operation of section 135 in the context of companies within Part 12 CTA 2010 (Real Estate Investment Trusts).

For detailed guidance on section 135 TCGA 1992, see CG52521+.

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