Taxation of Chargeable Gains Act 1992 section 192A

Exemptions for gains or losses on disposal of shares etc

Section 192A introduces the substantial shareholding exemption, which can exempt companies from capital gains tax (or deny loss relief) when they dispose of shares in another company in which they hold a substantial shareholding.

• This section gives legal effect to Schedule 7AC of the Taxation of Chargeable Gains Act 1992, which sets out the detailed rules for the substantial shareholding exemption.
• The exemption applies to disposals of shares (or interests in shares) made by companies, not by individuals.
• To qualify, the company making the disposal must hold a substantial shareholding in the company whose shares are being sold.
• Where the exemption applies, any gain on the disposal is not chargeable to tax, but equally any loss on the disposal is not an allowable loss.