CG58030 - Deferred consideration: shares/securities: position before TCGA92 S138A - ESC D27

When the deferred consideration is received the TCGA92/S138A notional security is then exchanged for shares or debentures. If the new debentures are not QCBs this transaction is treated as a conversion of securities within TCGA92/S132. In this way the cost or a proportion of the cost of the old shares or debentures is rolled over into the cost of the new shares or debentures as shown in the diagram below.

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