Taxation of Chargeable Gains Act 1992 Schedule 7AC paragraph 6

Other cases excluded from exemptions

Section 6 identifies three categories of disposal that are excluded from the substantial shareholding exemption regime, even where the other conditions for exemption would otherwise be met.

• Disposals deemed under existing chargeable gains legislation to take place at no gain and no loss are excluded from the substantial shareholding exemption.
• Disposals where the gain is already exempt from charge under some other legislative provision outside this Schedule are also excluded.
• Deemed disposals arising when an insurance company transfers an asset from one business category to another, under sections 116 to 118 of the Finance Act 2012, cannot benefit from the exemption.
• However, hypothetical disposals used to test whether the exemption conditions are met are not caught by any of these exclusions.