»Ê¹ÚÌåÓýapp

TCGA92/SCH5B/PARA10

»Ê¹ÚÌåÓýappre are three restrictions that are designed, broadly, to prevent deferral relief being available in circumstances where there is a disposal and acquisition of shares in the same company, or within the same group of companies.

Firstly, expenditure on eligible shares in a qualifying company cannot be set under Schedule 5B against a gain arising on the disposal of any shares or securities of:

• that company; or
• any company which is a member of the same group of companies as that company either when the disposal occurs or when the eligible shares are issued.

»Ê¹ÚÌåÓýapp second restriction applies if the investor disposes of any shares to which deferral relief is attributable (the ‘relief sharesâ€�). If the relief shares are shares in, say, company A, an investment by the investor in shares (the ‘later sharesâ€�) which are issued after some or all of the relief shares have been disposed of cannot be a qualifying investment for the purposes of Schedule 5B if the later shares are:

• shares in company A; or
• shares in any company which, at any time since the relief shares were issued, was a member of the same group of companies as company A.

»Ê¹ÚÌåÓýapp third restriction applies if deferral relief is attributable to any shares (the ‘relief sharesâ€�) the investor holds in, say, company A, and the gain in question which had been deferred arose on the disposal of shares (the ‘original sharesâ€�) in, say, company B. An investment by the investor in shares (the ‘later sharesâ€�) which are issued after the relief shares were issued cannot be a qualifying investment for the purposes of Schedule 5B if the later shares are:

• shares in company B; or
• shares in any company which was a member of the same group of companies as company B either when the original shares were disposed of or when the relief shares were issued.