Section 169Q | Reorganisations: disapplication of section 127 ^F1

(1)This section applies where—

(a)there is a reorganisation (within the meaning of section 126), and

(b)the original shares and the new holding (within the meaning of that section) would fall to be treated by virtue of section 127 as the same asset.

(2)If an election is made under this section, a claim for business asset disposal relief may be made as if the reorganisation involved a disposal of the original shares; and if such a claim is made section 127 does not apply.^F2

(3)An election under this section must be made—

(a)if the reorganisation would (apart from section 127) involve a disposal of trust business assets, jointly by the trustees and the qualifying beneficiary, and

(b)otherwise, by the individual.

(4)An election under this section must be made on or before the first anniversary of the 31 January following the tax year in which the reorganisation takes place.

(5)The references in this section to a reorganisation (within the meaning of section 126) includes an exchange of shares or securities which is treated as such a reorganisation by virtue of section 135 or 136.