[F1Capital gains tax: roll-over relief on disposal of syndicate capacityU.K.
Textual Amendments
F1Sch. 20A inserted (22.7.2004) by Finance Act 2004 (c. 12), Sch. 25 para. 3
3(1)This paragraph applies if—U.K.
(a)the aggregate of any chargeable gains accruing to the member on the syndicate capacity disposal exceeds the aggregate of any allowable losses accruing to him on that disposal, and
(b)the member makes a claim under this paragraph to an officer of the Board.
(2)The amount of the excess mentioned in sub-paragraph (1)(a) above (“the amount of the syndicate capacity gain”) shall for the purposes of capital gains tax be reduced by the amount of the rolled-over gain.
(3)For the purpose of computing any chargeable gain accruing to the member on a disposal by him of any issued share or any asset directly or indirectly derived from any issued share—
(a)the amount of the rolled-over gain shall be apportioned between the issued shares as a whole, and
(b)the sums allowable as a deduction under section 38(1)(a) of the Gains Tax Act shall be reduced by the amount apportioned to the issued share under paragraph (a) above; but, in the case of a derived asset, the reduction shall be by an appropriate proportion of that amount;
and if the issued shares are not all of the same class, the apportionment between the shares under paragraph (a) above shall be in accordance with their market values at the time they were acquired by the member.
(4)In this paragraph “the amount of the rolled-over gain” means the lesser of—
(a)the amount of the syndicate capacity gain, and
(b)the aggregate amount of any sums which would be allowable as a deduction under section 38(1)(a) of the Gains Tax Act if the issued shares were disposed of as a whole by the member in circumstances giving rise to a chargeable gain.
(5)In this paragraph the “issued shares” means the shares in the successor company issued to the member in consideration for the syndicate capacity disposal.]