Assuming that Enterprise Investment Scheme (EIS) relief is not attributable to shares, there are five conditions which must be met before ITA07/S145 will apply the ‘no disposal and no acquisition’ treatment when there is a ‘share-for-share’ acquisition of one company by another.

Firstly the ‘new company’ which is to acquire the shares in the exchange must previously have issued only subscriber shares and must acquire all the shares in the other company (the ‘old shares’ of the ‘old company’).

Secondly the consideration for the old shares must consist wholly of the issue of new shares in the new company.

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