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Official guidance
Capital Gains Manual

CG52700P · Shares and securities: company reconstructions and amalgamations: company reconstructions and amalgamations: the shareholder TCGA92/S136

  • CG52700 · Company reconstructions: shareholder: introduction
  • CG52701 · Company reconstructions: shareholder: qualifying conditions
  • CG52702 · Company reconstructions: shareholder: definition of debenture
  • CG52706 · Company reconstructions: shareholder: cancellation or extinction of shares
  • CG52707 · Company reconstructions: scheme of reconstruction, issue of shares, etc. on or after 17 April 2002
  • CG52707A · 1st Condition (Paragraph 2 Sch 5AA): issue of ordinary share capital
  • CG52707B · 2nd condition (paragraph 3 Sch 5AA): Equal entitlement to new shares
  • CG52707C · 3rd Condition (Paragraph 4 Sch 5AA): Continuity of Business
  • CG52707D · 4th condition (Paragraph 5 Sch 5AA): Compromise or arrangement with members
  • CG52709 · Company reconstructions: meaning of business: S136
  • CG52720 · Company reconstructions: shareholder: common examples
  • CG52721 · Company reconstructions: shareholder: demergers
  • CG52722 · Company reconstructions: shareholder: Section 110 Insolvency Act 1986 liquidations
  • CG52723 · Company reconstructions: shareholder: partitions
  • CG52724 · Company reconstructions: shareholder: distributions
  • CG52725 · Company reconstructions: shareholder: Part 26 Companies Act 2006
  • CG52726 · Company reconstructions: shareholder: Investment Trust and Unit Trust reconstructions
  • CG52728 · Company reconstructions: shareholder: unitisation schemes
  • CG52730 · Company reconstructions or amalgamations: position where shares issued before 17 April 2002
  • CG52740 · Company reconstructions: shareholder: effect of TCGA92/S136
  • CG52742 · Company reconstructions: shareholder: computations involving TCGA92/S136
  • CG52750 · Company reconstructions: shareholder: anti-avoidance provisions
  • CG52760 · Company reconstructions: shareholder: TCGA92/S136: introduction
  • CG52766 · Company reconstructions: TCGA92/S137 prevents TCGA92/S136 from applying
  • CG52767 · Company reconstructions: shareholder: TCGA92/S136 disapplied: tax unpaid
  1. Shares and securities: company reconstructions and amalgamations: company reconstructions and amalgamations: the shareholder TCGA92/S136: contents
  2. Company reconstructions: shareholder: cancellation or extinction of shares

CG52706 | Company reconstructions: shareholder: cancellation or extinction of shares

From HM Revenue & Customs · Capital Gains Manual

There is no need for the original shares to be cancelled, or otherwise extinguished. In many cases the shares will have become worthless and may be cancelled or disposed of for a nominal amount. However, in the case of a demerger, see CG52725, and similar examples the shareholders will retain their original shares.

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