Taxation of Chargeable Gains Act 1992 section 169SB

Overview of Chapter

Section 169SB provides an overview of the provisions that allow an individual to claim business asset disposal relief in certain cases where that relief would otherwise be lost because a company ceases to qualify as the individual's personal company.

• Chapter 3A addresses situations where a company ceases to be an individual's personal company, typically through dilution of the individual's shareholding
• Without these provisions, the individual would lose entitlement to business asset disposal relief on their shares
• The chapter provides for two elections: the first allows the individual to crystallise the gain on their equity holding at the point the dilution occurs
• The second election allows the individual to defer the point at which that crystallised gain is treated as accruing, postponing it until a later disposal of the shares or securities actually takes place