Section 122 | Agricultural property of companies.

(1)Where the whole or part of the value transferred is attributable to the value of shares in or securities of a company it shall be taken for the purposes of this Chapter to be attributable (so far as appropriate) to the agricultural value of agricultural property if and only if—

(a)the agricultural property forms part of the company’s assets and part of the value of the shares or securities can be attributed to the agricultural value of the agricultural property, and

(b)the shares or securities gave the transferor control of the company immediately before the transfer.

(2)Shares or securities shall not be regarded for the purposes of subsection (1)(b) above as giving the transferor control of a company if—

(a)they would not have been sufficient, without other property, to give him control of the company immediately before the transfer, and

(b)their value is taken by virtue of section 176 below to be less than the value previously determined.

(3)Where subsection (1) above applies—

(a)the references in section 116(2)(a) and (3)(b) above to the transferor’s interest shall be construed as references to the company’s interest, and

(b)section 123(1) below shall apply instead of section 117 above.