CG53230 | Substantial shareholdings exemption: interaction with other legislation - recovery of held-over gain - section 165 TCGA 1992

TCGA92/SCH7AC/PARA37

Paragraph 37 Schedule 7AC TCGA 1992 applies where

• a company disposes of an asset, and

• but for the substantial shareholdings exemptions regime,

• in calculating the chargeable gain or allowable loss on the disposal the expenditure allowable would be reduced because a gift hold-over relief claim had been made under section 165 TCGA 1992.

Paragraph 37 provides that in these circumstances a chargeable gain (or allowable loss) accrues at the time of the disposal equal to the appropriate proportion of the held-over gain.