E3.650 Restructuring of CDFI
Where a CDFI is a company, and there is a rights issue or other reorganisation, or an exchange of the CDFI's shares, or it is involved in a company reconstruction or amalgamation, the normal capital gains rules that would otherwise affect the treatment of the CDFI shares are disapplied.
Rights issues
The rules concerning the tax treatment of share capital following a reorganisation (in TCGA 1992, ss 127–130; see D6.202) do not apply in relation to an investor's existing holding of shares (which the investor has held continuously since the shares were issued) in the CDFI where:
- Ìý
(a)ÌýÌýÌýÌý the CDFI makes a rights or bonus issue of shares or debentures (other than an
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