Taxation of Chargeable Gains Act 1992 section 231

Shares: special provision

Section 231 made special provision for situations where replacement assets used to claim roll-over relief on the reinvestment of proceeds from the disposal of certain assets took the form of shares, and income tax relief (such as Enterprise Investment Scheme relief) was also claimed on those same shares.

• Where a roll-over relief claim was made under section 229 and the replacement asset consisted of shares on which income tax relief was also claimed, the shares were treated as if they were not a chargeable asset immediately after acquisition, effectively preventing the gain from being rolled over into those shares.
• This treatment applied both where the income tax relief claim was made before the roll-over relief was applied, and where it was made afterwards — in the latter case, retrospective adjustments were required.
• The provision also applied to replacement assets acquired before 6 April 1992 where the equivalent earlier legislation (section 33 of the Finance Act 1990) had been used.
• This section is now effectively repealed, as the underlying roll-over relief to which it related was withdrawn for disposals occurring on or after 6 April 2001.