Taxation of Chargeable Gains Act 1992 Schedule 5B paragraph 13C

Provision supplemental to paragraph 13B

Paragraph 13C sets out the circumstances in which the receipt of replacement value under the EIS reinvestment scheme is disregarded, preventing it from offsetting a receipt of value that would otherwise trigger a chargeable gain.

• Replacement value already used to offset a receipt of value in relation to the same or other shares subscribed for by the investor cannot be counted again — this prevents double-counting.
• Replacement value is disregarded if received before the period of restriction begins, or if not received as soon as reasonably practicable after the original value was received, or if received more than 60 days after a related appeal is finally determined.
• The replacement value does not necessarily have to be received after the original value — it can be provided in advance.
• Where the replacement value arises from a subscription for shares by the investor (or an associate of the investor during the period of restriction), that subscription cannot count as a qualifying investment for EIS reinvestment relief purposes.