Taxation of Chargeable Gains Act 1992 section 169SH

Claims for relief in respect of subsequent disposals

Section 169SH sets out the rules for claiming business asset disposal relief (formerly entrepreneurs' relief) on deferred chargeable gains that arise on a later disposal of shares, following an earlier election to defer those gains under section 169SD.

• Where a gain has been deferred under a section 169SD election and later crystallises on a subsequent disposal, the individual must claim business asset disposal relief by the first anniversary of 31 January following the tax year in which the deferred gain is treated as accruing.
• The deferred gain is fed into the relief calculation under section 169N at the point it accrues, ensuring the correct amount of relief is given.
• If only part of the original notional gain crystallises at first, each further gain that subsequently accrues is similarly fed into the section 169N calculation at the time it arises.
• For the purposes of the relief claim, the company is treated as having been the individual's personal company throughout the two years ending with the date of the subsequent disposal, even if that was not actually the case during that period.