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6. A claim under section 538(2) may not be made in relation to shares held by a company if by virtue of section 626B any loss accruing to the company on a disposal of the shares at the time of the claim, or at any earlier time at or after which the value of the shares becomes negligible, would not be an allowable loss.

(a) one holding of shares is treated by virtue of section 584 as the same asset as another, or

(1) In this paragraph “original shares” and “new holding” shall be construed in accordance with sections 584, 586 and 587.

in circumstances such that, under section 584 as that section applies by virtue of section 586 or 587, the original shares and the new holding are treated as the same asset.

(1) In this paragraph “original shares” and “new holding” shall be construed in accordance with sections 584, 586 and 587.

in circumstances such that, under section 584 as that section applies by virtue of section 586 or 587, the original shares and the new holding are treated as the same asset.

(1) In this paragraph “original shares” and “new holding” shall be construed in accordance with sections 584, 586 and 587.

(b) are deemed to be exchanged by virtue of section 587 for shares in the first company and shares in the second company,

in circumstances such that, under section 584 as that section applies by virtue of section 586 or 587, the original shares and the new holding are treated as the same asset.

(2) Section 618 applies in relation to this paragraph as it applies in relation to section 596.

(2) Section 618 applies in relation to this paragraph as it applies in relation to section 596.

(a) a company, as a result of ceasing at any time (in this paragraph referred to as the “time of degrouping”) to be a member of a group, is treated by section 623(4) as having sold and immediately reacquired an asset, and

then section 623(4) shall have effect as if it provided for the deemed sale and reacquisition to be treated as taking place immediately before the time of degrouping.

Section 626B

(4) Where subparagraph (2) applies to extend the period for which a company (in this paragraph referred to as the “first-mentioned company”) is treated as having held any shares, the first-mentioned company shall be treated for the purposes of section 626B(2)(a) as having had at any time the same entitlement—

(5) The shares and rights to be attributed to the first-mentioned company include any holding or entitlement attributed to the other company under section 626B(1)(b)(ii).

(4) In determining whether the conditions in paragraph (a) of section 626B(2) are satisfied but subject to subparagraph (5)—

(4) In determining whether the conditions in paragraph (a) of section 626B(2) are satisfied but subject to subparagraph (5)—

(a) is an investee company, and is accordingly the company by reference to which the shareholding requirement under section 626B(2)(a) falls to be met, or

6. A claim under section 538(2) may not be made in relation to shares held by a company if by virtue of section 626B any loss accruing to the company on a disposal of the shares at the time of the claim, or at any earlier time at or after which the value of the shares becomes negligible, would not be an allowable loss.

(b) if the company owning the asset at the time of degrouping had disposed of it immediately before that time, any gain accruing on the disposal would by virtue of section 626B not have been a chargeable gain,

(b) if the company had then sold the asset for its market value, a chargeable gain or allowable loss would have accrued to the company but for the provisions of section 626B,

Section 626C