Taxation of Chargeable Gains Act 1992 Schedule 7C paragraph 1

Introductory

Schedule 7C paragraph 1 introduces a roll-over relief that allows individual shareholders to defer capital gains tax when they sell unlisted shares to the trustees of a share incentive plan (SIP).

• An individual who sells shares to the trustees of a SIP plan trust can claim roll-over relief, provided certain conditions about the disposal and reinvestment of proceeds are met.
• This relief is not available to companies — only individuals (and other non-corporate persons) can claim it.
• References to a disposal of shares include a disposal of an interest in shares, so partial interests are also covered.
• Capital gains tax is deferred until the individual disposes of the replacement assets acquired with the sale proceeds.