Section 169U | Eligibility conditions for deferred business asset disposal relief ^F1

(1)Section 169V applies if, ignoring the operation of section 169V(2)(b), each of the following conditions is met.^F1

(2)The first condition is that a chargeable gain (“the first eventual gain”) accrues as a result of the operation of—^F1

paragraph 4 of Schedule 5B (enterprise investment scheme), or

paragraph 5 of Schedule 8B (investments in social enterprises).

(3)If the first condition is met, the paragraph and Schedule mentioned in subsection (2) that apply in the case are referred to in this section, and section 169V, as “the relevant paragraph” and “the applicable Schedule”.^F1

(4)The second condition is—^F1

(a)that the first eventual gain accrues in a case in which the original gain would, but for the operation of the applicable Schedule, have accrued on a relevant business disposal, or^F1

(b)where the first eventual gain accrues in a case in which the original gain would, but for the operation of the applicable Schedule, have accrued as a result of the operation of either of the paragraphs mentioned in subsection (2), that the underlying disposal is a relevant business disposal.^F1

(5)The third condition is that a claim for business asset disposal relief in respect of the first eventual gain is made, on or before the first anniversary of the 31 January following the tax year in which the first eventual gain accrues, by the individual who made the disposal mentioned in subsection (4)(a) or (b).^F1F2

(6)The fourth condition is that the first eventual gain is the first gain to accrue in the case as a result of the operation of the relevant paragraph.^F1

(7)In subsection (4) “the underlying disposal” means the disposal (not being a disposal within paragraph 3 of Schedule 5B or paragraph 6 of Schedule 8B) by virtue of which Schedule 5B or 8B has effect.^F1

(8)For the purposes of subsection (4), whether the disposal on which the original gain would have accrued is a relevant business disposal, or whether the underlying disposal is a relevant business disposal, is to be decided according to the law applicable to disposals made at the time the disposal was made.^F1

(9)In this section—^F1

“the original gain”, in relation to a particular case, has the same meaning as in the applicable Schedule,

“relevant business asset” has the meaning given by section 169L, and

“relevant business disposal” means—

(a)a disposal—

(i)within section 169H(2)(a) or (c) (qualifying business disposals), and

(ii)consisting of the disposal of (or of interests in) shares in or securities of a company, or

(b)a disposal of relevant business assets which is comprised in a disposal—

(i)within section 169H(2)(a) or (c), and

(ii)not consisting of the disposal of (or of interests in) shares in or securities of a company.