Taxation of Chargeable Gains Act 1992 Schedule 5BA paragraph 7

Relevant re-investment shares

Paragraph 7 of Schedule 5BA defines which shares qualify as "relevant re-investment shares" for the purposes of the enterprise investment scheme deferral relief provisions.

• Relevant re-investment shares are shares in a qualifying company that are subscribed for by the investor using the proceeds from a chargeable gain that would otherwise be taxable.
• The shares must be issued to the investor and must meet the requirements of the enterprise investment scheme, including being ordinary shares that carry no preferential rights.
• The subscription for the shares must take place within a specified time window relative to the disposal that gave rise to the original chargeable gain.
• The definition was amended by Finance Act 2008, Schedule 2, paragraph 49, to reflect updates to the enterprise investment scheme rules.