Taxation of Chargeable Gains Act 1992 Schedule 8B paragraph 5

Held-over gain treated as accruing on disposal etc of the qualifying investment

Paragraph 5 of Schedule 8B deals with how a previously held-over gain is brought back into charge when a chargeable event occurs in relation to a social enterprise investment.

• When a chargeable event occurs in relation to the entire social holding, a chargeable gain equal to the full amount of the original held-over reduction is treated as accruing at that point.
• When a chargeable event affects only part of the social holding, only a proportionate share of the remaining held-over gain is brought back into charge.
• Any gains already brought back into charge through earlier partial chargeable events are deducted before calculating the proportionate gain on a subsequent event, ensuring the total gains recovered never exceed the original reduction.
• For the purposes of apportioning the held-over gain, the calculation takes into account all parts of the holding held by the investor or by a spouse or civil partner who acquired part of the holding through a transfer within the marriage or civil partnership.