Taxation of Chargeable Gains Act 1992 section 169VU

"Subscribe" etc.

Section 169VU defines what it means to "subscribe for" shares for the purposes of the investors' relief rules, and sets out how transfers between spouses or civil partners are treated.

• A person subscribes for shares only where the shares are issued directly by the company for cash consideration, are fully paid up on issue, and the transaction is at arm's length for genuine commercial reasons rather than to obtain a tax advantage for any person.
• Where shares are transferred between spouses or civil partners who are living together, the recipient is treated as having originally subscribed for those shares themselves.
• The period during which the transferring spouse or civil partner held the shares is added to the recipient's holding period, which is important for meeting the qualifying conditions for investors' relief.
• A person who subscribes for shares jointly with another person is still treated as having subscribed for those shares for the purposes of this relief.