Finance Act, 1982

Restriction of Schedule 2 (companies and shareholders) of Capital Gains Tax Act, 1975.

63.—(1) Neither paragraph 4 nor paragraph 5 of Schedule 2 to the Capital Gains Tax Act, 1975 , shall apply to the issue, on or after the 24th day of June, 1982, by a company of shares in the company—

(a) by way of such an exchange as is referred to in the said paragraph 4, or

(b) under such a scheme of reconstruction or amalgamation as is referred to in the said paragraph 5,

unless it is shown that the exchange, reconstruction or amalgamation is effected for bona fide commercial reasons and does not form part of any arrangement or scheme of which the main purpose, or one of the main purposes, is avoidance of liability to tax.

(2) In subsection (1) “shares” has the same meaning as in section 62 .