C1Part IV Shares, securities, options etc.

Annotations:
Modifications etc. (not altering text)
C1

Pt. IV: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

Chapter I General

Share pooling, identification of securities, and indexation

C4C3C2C5106AF15Identification of securities: F7... capital gains tax.

1

This section has effect for the purposes of capital gains tax (but not corporation tax) where any securities are disposed of by any person.

2

The securities disposed of shall be identified in accordance with the following provisions of this section with securities of the same class that have been acquired by the person making the disposal.

3

The provisions of this section have effect in the case of any disposal notwithstanding that some or all of the securities disposed of are otherwise identified—

a

by the disposal, or

b

by a transfer or delivery giving effect to it;

but where a person disposes of securities in one capacity, they shall not be identified under those provisions with any securities which he holds, or can dispose of, only in some other capacity.

4

Securities disposed of on an earlier date shall be identified before securities disposed of on a later date; and, accordingly, securities disposed of by a later disposal shall not be identified with securities already identified as disposed of by an earlier disposal.

5

Subject to subsection (4) above, if within the period of thirty days after the disposal the person making it acquires securities of the same class, the securities disposed of shall be identified—

a

with securities acquired by him within that period, rather than with other securities; F8...

F4aa

with securities acquired by him within that period which are not relevant EMI shares, rather than with securities acquired by him within that period which are relevant EMI shares; and

b

F12subject to paragraph (aa), with securities acquired at an earlier time within that period, rather than with securities acquired at a later time within that period.

F115ZA

None of the securities which, by virtue of subsection (5) above, are identified with other securities shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.

F15A

Subsection (5) above shall not require securities to be identified with securities which the person making the disposal acquires at a time when—

a

he is F2not resident in the United Kingdom, or

b

he is resident F6... in the United Kingdom but is Treaty non-resident.

6

Subject to subsections (4) and (5) above, F14relevant securities disposed of shall be identified with F14relevant securities acquired at a later time, rather than with F14relevant securities acquired at an earlier time.

F166A

Subject to subsections (4) and (5) above, a company's shares which are disposed of shall be identified—

a

with relevant EMI shares, rather than with other shares, and

b

with relevant EMI shares acquired at an earlier time rather than with relevant EMI shares acquired at a later time.

6B

No shares identified with relevant EMI shares by virtue of subsection (6A)(a) or (b) above shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.

F107

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F98

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

The identification rules set out in the preceding provisions of this section have effect subject to subsection (1) of section 105, and securities disposed of shall not be identified with securities acquired after the disposal except in accordance with that section or subsection (5) above.

F310

In this section—

  • F5“relevant EMI shares” has the meaning given by section 169I(7C) to (7G),

  • “securities” means any securities within the meaning of section 104 or any relevant securities, and

  • “relevant securities” means—

    1. a

      securities within the meaning of Chapter 2 of Part 12 of ITA 2007 (accrued income profits),

    2. b

      qualifying corporate bonds, and

    3. c

      F13securities which are interests in a non-reporting fund, within the meaning of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001) (see regulation 4(2)).

11

For the purposes of this section securities of a company shall not be treated as being of the same class unless they are so treated by the practice of a recognised stock exchange, or would be so treated if dealt with on that recognised stock exchange.