Taxation of Chargeable Gains Act 1992 Schedule 5C paragraph 3

Chargeable events

Schedule 5C paragraph 3 defines the chargeable events that trigger a clawback of relief previously given on gains reinvested into qualifying investments under the Enterprise Investment Scheme or similar provisions.

• A chargeable event occurs when the investor disposes of the qualifying shares, or when the shares cease to qualify, within a specified period after acquisition.
• The original deferred gain is brought back into charge when a chargeable event takes place, meaning the investor becomes liable for the capital gains tax that was previously postponed.
• Certain events are excluded from being treated as chargeable events, such as disposals between spouses or civil partners, or disposals on death.
• The chargeable gain that crystallises on the occurrence of a chargeable event is treated as accruing at the time of that event, not at the time of the original disposal.