Taxation of Chargeable Gains Act 1992 Schedule 7AC paragraph 32

Meaning of "chargeable shares" or "chargeable asset"

Paragraph 32 ensures that the substantial shareholding exemption does not affect whether shares or assets are classified as "chargeable shares" or "chargeable assets" for tax purposes.

• The substantial shareholding exemption may relieve a gain from tax, but it does not change the underlying nature of the shares or assets involved.
• Shares that would otherwise be "chargeable shares" remain chargeable shares even if a disposal qualifies for the exemption.
• Similarly, any asset that would otherwise be a "chargeable asset" retains that status regardless of the exemption.
• This classification is preserved for all purposes of corporation tax and capital gains tax legislation.