Taxation of Chargeable Gains Act 1992 section 105B

Provision supplementary to section 105A

Section 105B sets out the supplementary rules and conditions that apply when an individual makes an election under section 105A to keep shares acquired under tax-advantaged schemes separate from other shares acquired on the same day.

• The section 105A identification rules override all other share identification rules, even where specific shares can be identified through the disposal or transfer itself
• The election must be made by notice to HMRC within one year and ten months after the end of the tax year in which the first disposal of the relevant shares takes place
• No election may be made in respect of ordinary shares held in a venture capital trust, and shares are only treated as being of the same class if a recognised stock exchange would treat them as such
• Where shares acquired on the same day later cease to be treated as a different class from the relevant shares, the election automatically extends to cover those shares from that point onwards