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CG61972 | Roll-over relief on transfer of shares to a Share Incentive Plan: the conditions for the relief

From HM Revenue & Customs · Capital Gains Manual

There are various conditions which must be satisfied before any relief is due. These are set out below and you will find more information in the guidance referred to. To qualify for relief:

  • the person disposing of the shares cannot be a company

  • the disposal must be to the trustees of a Share Incentive Plan as defined by ITEPA03/SCH2, see BIM44251

  • the disposal must be of unlisted shares that may be held in a Share Incentive Plan, see CG61973

  • the trustees must have a minimum stake of 10% in the company in a specified period, see CG61974

  • there must be no arrangements under which the vendor can reacquire any of the shares, except as a participant in the approved Share Incentive Plan, see CG61975.

  • the person disposing of the shares must acquire replacement assets within a specified period, see CG61976

An Share Incentive Plan is a plan within ITEPA03/SCH2. If you are unsure whether a given plan qualifies under that legislation, you should contact the IPD Technical Team before agreeing that any relief is due.