If—
an individual or company ("the investor") holds shares in the CDFI which are of the same class and held in the same capacity ("the existing holding"),
there is a reorganisation affecting the existing holding as a result of an allotment which—
falls within section 126(2)(a) (an allotment of shares or debentures in respect of and in proportion to an original holding), and
is not an allotment of corresponding bonus shares,
immediately after the reorganisation, CITR is attributable to the shares included in the existing holding or the shares or debentures allotted in respect of those shares, in respect of one or more years of assessment or accounting periods, and
if CITR is attributable to the shares included in the existing holding at that time, those shares have been held by the investor continuously from the time they were issued until the reorganisation,
sections 127 to 130 (treatment of share capital following a reorganisation) do not apply in relation to the existing holding.
For the purposes of subsection (1)—
"corresponding bonus shares" means bonus shares that—
(a)are issued in respect of shares included in the existing holding, and
(b)are in the same company, are of the same class, and carry the same rights as, those shares,
"reorganisation" has the meaning given in section 126.
The following provisions of this Act have effect subject to this section—
section 116 (reorganisations, conversions and reconstructions);
Chapter 2 of Part 4 (reorganisation of share capital, conversion of securities etc).
In this section "the CDFI" is to be read—
if the investor is an individual, in accordance with section 334(2) of ITA 2007,
if the investor is a company, in accordance with section 219(2) of CTA 2010.