Taxation of Chargeable Gains Act 1992 section 104

Share pooling: general interpretative provisions

Section 104 establishes the share pooling rules, which treat multiple securities of the same class held by the same person as a single pooled asset for capital gains tax and corporation tax purposes, and sets out key definitions and exceptions that apply when shares are acquired or disposed of.

• All securities of the same class, acquired by the same person in the same capacity, are treated as indistinguishable parts of a single pooled asset (the "section 104 holding") that grows on acquisition and shrinks on disposal
• Shares acquired by employees under disposal restrictions, and shares held by employee ownership trust trustees under specific relief provisions, are kept in separate pools from other shares of the same class
• For capital gains tax purposes, any securities in the pool that were held on 31 March 1982 must be rebased to their market value at that date; for corporation tax, securities acquired before 1 April 1982 are excluded from pooling altogether
• A partial disposal from a section 104 holding is treated as a disposal of part of a single asset, with the allowable cost apportioned accordingly using the standard part-disposal rules