Taxation of Chargeable Gains Act 1992 section 198H

Acquisition by member of same group

Section 198H allows the ring fence reinvestment relief under sections 198A or 198B to be claimed across two companies within the same corporate group, so that one group company can make the disposal and a different group company can make the qualifying reinvestment acquisition.

• Where a company in a group disposes of a ring fence asset and another company in the same group acquires a qualifying new asset, both companies can jointly claim reinvestment relief as though they were a single person.
• The disposing company must be a member of a group of companies (as defined in section 170) at the time of the disposal, and the acquiring company must be a member of the same group at the time of the acquisition.
• Both companies must make the claim together — it is not sufficient for only one company to claim.
• This provision applies to disposals made on or after 22 April 2009.