Paragraphs (a) and (b) below shall apply where securities of the same class are acquired or disposed of by the same person on the same day and in the same capacity—
all the securities so acquired shall be treated as acquired by a single transaction and all the securities so disposed of shall be treated as disposed of by a single transaction, and
all the securities so acquired shall, so far as their quantity does not exceed that of the securities so disposed of, be identified with those securities.
Where the quantity of securities disposed of by any person exceeds the aggregate quantity of—
the securities (if any) which are required by subsection (1) above to be identified with securities acquired on the day of the disposal,
the securities (if any) which are required by section 106A(5) to be identified with securities acquired after the day of the disposal, and
the securities (if any) which are required by any of the provisions of sections 104, ... 106A or 107, or of Schedule 2, to be identified with securities acquired before the day of the disposal,
the disposal shall be treated as diminishing a quantity of securities subsequently acquired, and as so diminishing any quantity so acquired at an earlier date, rather than one so acquired at a later date.
None of the securities which, by virtue of this section, are identified with other securities shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.
Subsection (5) applies if an individual—
acquires shares ("the relevant shares") of the same class, on the same day and in the same capacity, and
some of the relevant shares are relevant EMI shares (as defined by section 169I(7C) to (7G)).
This section has effect as if—
paragraph (a) of subsection (1) required the relevant EMI shares to be treated as acquired by the individual by a single transaction separate from the remainder of the relevant shares (which are also to be treated by virtue of that paragraph as acquired by the individual by a single transaction), and
subsection (1) required the relevant EMI shares to be treated as disposed of after the remainder of the relevant shares.