Income Tax Act 2007 section 148

Disposal of shares forming part of mixed holding

Section 148 sets out the rules for identifying which shares are being disposed of when an individual sells shares from a "mixed holding" — that is, a holding that contains both shares capable of being qualifying shares (for share loss relief purposes) and shares that are not.

• When shares are sold from a mixed holding, specific identification rules determine whether the shares disposed of are qualifying shares and, if so, which qualifying shares (acquired at different times) the disposal relates to.
• In the general case, the standard capital gains tax identification rules apply, and where shares fall within a section 104 pool, disposals are treated as relating to shares acquired later before those acquired earlier (a "last in, first out" approach).
• Special identification rules apply where the mixed holding includes shares attracting SEIS relief, business expansion scheme relief (pre-1994 shares), EIS income tax relief, or EIS capital gains deferral relief — with different rules depending on whether the shares were issued before 1994, between 1994 and 5 April 2007, or on or after 6 April 2007.
• Any identification question that cannot be resolved by the specific rules must be determined on a just and reasonable basis.