Taxation of Chargeable Gains Act 1992 Schedule 5B paragraph 3

Chargeable events

Section 3 defines the events that trigger a deferred capital gain back into charge where an investor has reinvested into EIS-qualifying shares, covering disposals, loss of UK residence, and shares ceasing to be eligible.

• A deferred gain is triggered when the investor disposes of the EIS shares (other than to a spouse or civil partner), or when a spouse or civil partner who received the shares on a no gain/no loss transfer disposes of them onward
• Becoming non-UK resident while holding the shares before the termination date is a chargeable event, but an exemption applies where the reason is an overseas employment and the person returns to the UK within three years without having disposed of the shares
• The shares ceasing to be, or being treated as ceasing to be, eligible shares also triggers the deferred gain back into charge
• Death does not trigger a chargeable event — if the investor or a spouse or civil partner who received the shares dies, no deferred gain is brought back into charge in respect of the shares they held at death