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Share Loss Relief - subscription for shares

CGT share loss relief and subscription for money's worth

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Dear All

A question if I may. Client held shares in  a qualifying EIS company. The company was taken over in a share for share exchange. Takeover company was an unlimited trading company but not a company in which EIS had been sought. The solicitors advised thatt the takeover triggered a disposal of the original EIS shares. As these were held for more than 3 years no CGT was due. Client now holds shares in the takeover company, which has subsequently gone bust. It appears that the shares in the takeove company qualify for share loss relief. However my question is whether the share for share exchange (no clearances were sought) is classsed as a subscription for shares?

Thank you

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