2U.K.Chapter 1 of Part 4 of TCGA 1992 (general provision relating to shares etc) is amended as follows.
3U.K.In section 105 (disposal on or before day of acquisition of shares etc) after subsection (3) insert—
“(4)Subsection (5) applies if an individual—
(a)acquires shares (“the relevant shares”) of the same class, on the same day and in the same capacity, and
(b)some of the relevant shares are relevant EMI shares (as defined by section 169I(7C) to (7G)).
(5)This section has effect as if—
(a)paragraph (a) of subsection (1) required the relevant EMI shares to be treated as acquired by the individual by a single transaction separate from the remainder of the relevant shares (which are also to be treated by virtue of that paragraph as acquired by the individual by a single transaction), and
(b)subsection (1) required the relevant EMI shares to be treated as disposed of after the remainder of the relevant shares.”
4(1)Section 106A (identification of securities for capital gains tax purposes) is amended as follows.U.K.
(2)In subsection (5)—
(a)omit the “and” after paragraph (a),
(b)after paragraph (a) insert—
“(aa)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”, and
(c)at the beginning of paragraph (b) insert “ subject to paragraph (aa), ”.
(3)After subsection (6) insert—
“(6A)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.”
(4)In subsection (10), before the definition of “securities”, insert—
“relevant EMI shares” has the meaning given by section 169I(7C) to (7G),”.