Taxation of Chargeable Gains Act 1992 Schedule 8B paragraph 4

Claim to hold gain over while invested in a social enterprise

Section 4 of Schedule 8B sets out how an investor can claim to reduce (hold over) a chargeable gain by reinvesting in a qualifying social enterprise, including the limits and conditions that apply to such claims.

• An investor can claim to reduce the original chargeable gain by up to the amount invested in the social enterprise, but the reduction cannot exceed the original gain (or the gain as already reduced by other reliefs)
• The same investment amount cannot be used more than once to generate relief — it cannot also be set against gains under EIS deferral relief (Schedule 5B), SEIS reinvestment relief (Schedule 5BB), or a previous claim under this Schedule
• There is an annual cap of £1,000,000 on the total gains that an individual investor may hold over under this Schedule in any single tax year
• The relief is attributed to the assets forming the social holding, but ceases to be attributed to a particular asset when a chargeable event occurs in relation to that asset or when the holder of the asset dies