Taxation of Chargeable Gains Act 1992 section 229

The relief

Section 229 sets out how roll-over relief for disposals connected with Employee Share Ownership Trusts (ESOTs) operates in practice, including full relief, partial relief, the claim time limit, and the interaction with other parties and deemed consideration rules.

• Full roll-over relief allows the gain on disposal to be deferred by treating the disposal consideration as producing neither a gain nor a loss, with the acquisition cost of the new asset reduced accordingly — a claim must be made within two years of the acquisition
• Partial relief applies where not all of the relevant amount is reinvested but the portion not reinvested is less than the gain — in that case, the gain is reduced to the uninvested portion and the acquisition cost is reduced by the same amount
• The relief does not affect the capital gains tax treatment of the other party to either the disposal or the acquisition
• Any statutory rules deeming a particular amount of consideration for a disposal or acquisition must be applied before the roll-over relief calculations are carried out