Taxation of Chargeable Gains Act 1992 section 169VT

Election to disapply section 127

Section 169VT allows a shareholder to elect out of the normal tax-free rollover treatment that applies to share reorganisations and share exchanges, so that investors' relief can be claimed on the deemed disposal of the original shares.

• Where shares qualifying for investors' relief are reorganised or exchanged, the normal rule treats the original and new shares as the same asset, with no disposal occurring — this section allows an election to override that treatment.
• If the election is made, the reorganisation or exchange is treated as a disposal of the original shares, enabling a claim for investors' relief on any gain arising at that point.
• The election must be made by the individual shareholder, or jointly by the trustees and the eligible beneficiary where the shares are held in a settlement.
• The deadline for making the election is the first anniversary of 31 January following the tax year in which the reorganisation or exchange takes place.