Taxation of Chargeable Gains Act 1992 Schedule 7C paragraph 4

Provision supplementary to paragraphs 2 and 3

Schedule 7C paragraph 4 defines the key time periods and conditions that apply to the disposal and reinvestment rules for transfers of shares to approved Share Incentive Plans.

• The entitlement period runs for 12 months from the date of disposal, during which the trustees must meet the 10% shareholding requirement.
• The acquisition period for replacement assets runs for six months from either the disposal date or the date the 10% requirement is first met, whichever is later — giving a maximum of up to 18 months in some cases.
• The proscribed period runs from the disposal until the later of the acquisition date or the date the 10% requirement is first met, during which certain conditions must be observed.
• Any arrangements connected with the plan are treated as unauthorised unless they only permit shares to be appropriated to, or acquired on behalf of, an individual under the plan.