Taxation of Chargeable Gains Act 1992 Schedule 5BA paragraph 3

Qualifying holding period

Paragraph 3 of Schedule 5BA establishes the minimum period for which shares must be held in order to qualify for the relevant capital gains tax relief.

• Shares must be held for a continuous qualifying period before disposal in order to attract the relief.
• The qualifying holding period is designed to ensure that the relief rewards genuine, longer-term investment rather than short-term speculation.
• The holding period requirements were amended by the Finance Act 2008 (Schedule 2, paragraph 49), which may have altered the length or conditions of the qualifying period.
• If the shares are disposed of before the end of the qualifying holding period, the relief will not be available on that disposal.