C4Part IV Shares, securities, options etc.

Annotations:
Modifications etc. (not altering text)
C4

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

C1C2C3C5106AF1Identification of securities: F8... 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; and

b

with securities acquired at an earlier time within that period, rather than with securities acquired at a later time within that period.

F35ZA

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.

F25A

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 neither resident nor ordinarily resident in the United Kingdom, or

b

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

6

Subject to subsections (4) and (5) above, F4relevant securities disposed of shall be identified with F4relevant securities acquired at a later time, rather than with F4relevant securities acquired at an earlier time.

F57

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F68

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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.

F710

In this section—

  • “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

      securities which are, or have at any time been, material interests in a non-qualifying offshore fund, within the meaning of Chapter 5 of Part 17 of the Taxes Act.

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.