9(1)This paragraph applies in any case where—
(a)a company (in this paragraph referred to as " the first company ") disposes of securities to another company, (in this paragraph referred to as " the second company ") which has made an election under this Schedule, and
(b)the disposal is one to which section 267 or section 273 of the Taxes Act applies (transfers on a company reconstruction etc. and within a group of companies to be on a no gain/no loss basis), and
(c)the disposal by the first company takes place outside the qualifying period.
(2)Nothing in this paragraph affects the operation of paragraph 2 of Schedule 13 to the 1982 Act, but paragraph 3 of that Schedule shall have effect subject to the provisions of this Schedule.
(3)On the disposal referred to in sub-paragraph (1) above (which is the initial disposal within the meaning of the said paragraph
(a)the consideration for the disposal shall become part of the second company's indexed pool of expenditure ; and
(b)so much of that consideration as does not consist of the indexation allowance on the disposal shall become part of the second company's unindexed pool of expenditure.