Taxation of Chargeable Gains Act 1992 Schedule 8B paragraph 6

Chargeable events

Section 6 defines the events that trigger a held-over gain to come back into charge for capital gains tax purposes in relation to social investment holdings, and sets out detailed identification rules for determining which assets are treated as disposed of first.

• A chargeable event occurs when the investor disposes of the social holding (other than to a spouse or civil partner), when the holding is cancelled, extinguished, redeemed or repaid, or when eligibility conditions for Social Investment (SI) relief cease to be met.
• Death of the investor or of a spouse/civil partner who received the holding does not trigger a chargeable event, and no subsequent occurrence can revive the deferred gain on assets held by the deceased at death.
• Where an investor sells some assets of a class while retaining others, a first-in, first-out rule applies on a daily basis, and for same-day acquisitions a priority ordering applies: unreleived assets first, then hold-over relief only, then SI relief only, and finally assets carrying both reliefs last.
• The normal share pooling and identification rules in sections 104, 105 and 106A of TCGA 1992 are disapplied for assets carrying hold-over relief under this Schedule (unless SI relief also attaches), and the original held-over gain is apportioned on a just and reasonable basis where assets have been reorganised or restructured.