Taxation of Chargeable Gains Act 1992

[F1 When does the Schedule apply? U.K.

Textual Amendments

F1 Sch. 8B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 12 para. 3

1 (1) This Schedule applies if— U.K.

(a) a chargeable gain accrues to an individual (“the investor”),

(b) the investor acquires one or more assets (“the social holding”),

(c) the investor is eligible for SI relief under Part 5B of ITA 2007 in respect of the consideration given for the social holding, and

(d) conditions A, B, C, D and E are met.

(2) Condition A is that the gain is one that accrues—

(a) on the disposal by the investor of an asset,

(b) in accordance with section 169N (but see sub-paragraph (7)), or

(c) as a result of the operation of paragraph 5 in connection with a chargeable event within paragraph 6(1)(c) or (d).

(3) Condition B is that the gain is one that accrues—

(a) on or after 6 April 2014, and

(b) before [F2 6 April 2023] (but see sub-paragraph (8)).

(4) Condition C is that the investor is resident in the United Kingdom—

(a) when the gain accrues, and

(b) when the social holding is acquired.

(5) Condition D is that the social holding is acquired by the investor on the investor's own behalf.

(6) Condition E is that the social holding is acquired—

(a) in the 3 years beginning with the day when the gain accrues, or

(b) in the year that ends at the beginning of that day.

(7) The reference in sub-paragraph (2)(b) to a gain accruing in accordance with section 169N does not include such a gain so far as it is chargeable to capital gains tax at the rate in section 169N(3) (rate where [F3 business asset disposal relief] is available).

(8) The Treasury may by order substitute a later date for the date for the time being specified in sub-paragraph (3)(b).

Textual Amendments

F2 Words in Sch. 8B para. 1(3)(b) substituted (10.6.2021) by Finance Act 2021 (c. 26), s. 20(b)

F3 Words in Act substituted (with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 3 paras. 7(2)(a), 8 (with Sch. 3 para. 7(3))

2 (1) This Schedule also applies if— U.K.

(a) a chargeable gain accrues to an individual (“the investor”),

(b) the gain accrues as a result of the operation of paragraph 5 in connection with a chargeable event within paragraph 6(1)(a), (b) or (c),

(c) the chargeable event is either—

(i) a disposal to a social enterprise of shares in or debentures of the social enterprise, or

(ii) the cancellation, extinguishment, redemption or repayment by a social enterprise of shares in or debentures of the social enterprise,

(d) as part of the chargeable event or in connection with it, and in place of the shares or debentures, the investor acquires one or more assets (“the social holding”) from the social enterprise,

(e) other than the investor's ceasing to hold the shares or debentures, no detriment is suffered in return for the acquisition of the social holding,

(f) the asset acquired, or each of the assets acquired, is a share in or debenture of the social enterprise,

(g) but for section 257LA of ITA 2007 (consideration for acquisition must be wholly in cash and fully paid) the investor would be eligible for SI relief under Part 5B of ITA 2007 in respect of the consideration given for the social holding, and

(h) conditions F, G, H and J are met.

(2) Condition F is that the gain is one that accrues—

(a) on or after 6 April 2014, and

(b) before [F4 6 April 2023] (but see sub-paragraph (6)).

(3) Condition G is that the investor is resident in the United Kingdom—

(a) when the gain accrues, and

(b) when the social holding is acquired.

(4) Condition H is that the social holding is acquired by the investor on the investor's own behalf.

(5) Condition J is that the social holding is acquired—

(a) in the 3 years beginning with the day when the gain accrues, or

(b) in the year that ends at the beginning of that day.

(6) The Treasury may by order substitute a later date for the date for the time being specified in sub-paragraph (2)(b).

(7) In this paragraph “debenture” includes any instrument creating or acknowledging indebtedness.

(8) A reference in this paragraph to a social enterprise is a reference to a body that is a social enterprise for the purposes of Part 5B of ITA 2007 (see section 257J of that Act).]

Textual Amendments

F4 Words in Sch. 8B para. 2(2)(b) substituted (10.6.2021) by Finance Act 2021 (c. 26), s. 20(b)