Taxation of Chargeable Gains Act 1992 Schedule 5B paragraph 10

Re-investment in same company etc.

Section 10 of Schedule 5B prevents investors from claiming Enterprise Investment Scheme deferral relief where the new shares are acquired in the same company, or within the same group of companies, as the shares that were disposed of or that previously attracted deferral relief.

• An investor cannot claim deferral relief if the new eligible shares are issued by the same company whose shares or securities were originally disposed of, or by a company in the same group at the time of disposal or at the time the new shares are issued.
• If an investor has already received deferral relief on shares in a company and later disposes of some or all of those shares, a further investment in that same company, or in any company that has been in the same group since the relief shares were issued, cannot qualify for deferral relief.
• Where a deferred gain originally arose on the disposal of shares in one company and deferral relief was obtained by investing in a second company, a later investment cannot qualify for deferral relief if the new shares are in the first company, or in any company that was in the same group as that first company at the time of the original disposal or the relief investment.
• For these purposes, a group of companies means a parent company together with all of its 51 per cent subsidiaries.