Income Tax (Trading and Other Income) Act 2005

711 Identification of shares after disposals

(1) In determining whether a disposal relates to shares in a company which were acquired when it was a venture capital trust or others, it is assumed that the others are disposed of first.

(2) In determining whether a disposal of shares in a company which were acquired when it was a venture capital trust relates to shares which meet the condition in section 709(4) (annual acquisition limit) or others (“excess shares”), assumptions A and B are to be made.

(3) Assumption A is that shares acquired on an earlier day are disposed of before those acquired on a later day.

(4) Assumption B is that where the shares were acquired on the same day, excess shares are disposed of first.

(5) For the purposes of this section, acquisitions and disposals by an individual’s nominee are treated as made by the individual, and acquisitions and disposals between them are ignored.