Finance Act 2008

8 (1) This paragraph applies where there is a relevant chargeable event in a case in which the original gain would, apart from Schedule 5B (enterprise investment scheme) or Schedule 5C (venture capital trusts), have accrued before 6 April 2008. U.K.

(2) “Relevant chargeable event” means a chargeable event under—

(a) paragraph 3(1) of Schedule 5B, or

(b) paragraph 3(1) of Schedule 5C,

which occurs on or after 6 April 2008 in relation to any of the relevant shares held by the investor immediately before the first relevant chargeable event.

(3) In this paragraph “the first relevant chargeable event” means the first relevant chargeable event in the case.

(4) The following provisions apply if—

(a) the relevant disposal would have been a material disposal of business assets had Chapter 3 of Part 5 applied in relation to it (even though made before 6 April 2008), and

(b) a claim is made on or before the first anniversary of the 31 January following the tax year in which the first relevant chargeable event occurs.

(5) In this paragraph “the relevant disposal” means—

(a) where the original gain would have accrued in accordance with section 164F or 164FA, paragraphs 4 and 5 of Schedule 5B or paragraphs 4 and 5 of Schedule 5C (the “original gain event”), the relevant underlying disposal, and

(b) otherwise, the disposal on which the original gain would have accrued (“the original gain disposal”).

(6) In sub-paragraph (5)(a) “the relevant underlying disposal” means the disposal (not being a disposal within paragraph 3 of Schedule 5B or 5C) by virtue of which Schedule 5B or 5C has effect.

(7) Subject as follows, the amount treated as accruing on the relevant chargeable event in respect of the original gain event or original gain disposal is the amount which would be arrived at under section 169N(1) to (3) if—

(a) the relevant chargeable event were a qualifying business disposal (within the meaning of Chapter 3 of Part 5), and

(b) the relevant proportion of the postponed gain constituted the amount resulting under section 169N(1);

and “the relevant proportion” means the proportion of the relevant shares which is held by the investor immediately before the first relevant chargeable event.

(8) The amount treated as accruing on the relevant chargeable event in respect of the original gain event or original gain disposal is that specified in sub-paragraph (9) where the relevant chargeable event is not a chargeable event in relation to all the relevant shares held by the investor immediately before the first relevant chargeable event.

(9) The amount referred to in sub-paragraph (8) is the appropriate proportion of the amount in sub-paragraph (7); and “the appropriate proportion” means the proportion of the relevant shares held by the investor immediately before the first relevant chargeable event as respects which the relevant chargeable event is a chargeable event.

(10) In this paragraph—

• “chargeable event” is to be construed in accordance with paragraph 3 of Schedule 5B or paragraph 3 of Schedule 5C,

• “investor” has the same meaning as in paragraph 1 of Schedule 5B or paragraph 1 of Schedule 5C,

• “the original gain” has the same meaning as in paragraph 1 of Schedule 5B or paragraph 1 of Schedule 5C,

• “the postponed gain” means so much of the original gain as is treated by paragraph 2(2)(a) of Schedule 5B or paragraph 2(2)(a) of Schedule 5C as not having accrued at the accrual time, and

• “relevant shares” has the same meaning as in Schedule 5B or Schedule 5C.

(11) References in this paragraph to any provision are to be read as they would be if this paragraph formed part of TCGA 1992.