Substantial shareholdings exemption: the exemptions available - other cases excluded from exemption
Paragraph 6 Schedule 7AC TCGA 1992 provides that three cases are excluded from the substantial shareholdings exemption regime. None of the exemptions is available
- where the disposal is deemed to be for a consideration such that no gain or loss accrues to the person making the disposal;
- where a gain on the disposal would not be a chargeable gain by virtue of any other enactment;
- to a deemed disposal under section 440(1) or (2) ICTA 1988 when an asset is transferred between categories of business within a life assurance company. There is guidance on paragraph 6(1)(c) in the Life Assurance Manual.
Paragraph 6 also specifically provides that the hypothetical disposals contemplated by
- paragraphs 2(2)(b) or 2(3)(b) Schedule 7AC TCGA 1992 (hypothetical disposals in considering whether the subsidiary exemption for assets related to shares is available - see CG53160),
- paragraph 3(2)(d) Schedule 7AC TCGA 1992 (hypothetical disposals in considering whether the subsidiary exemption where the conditions for the relief were previously met is available - see CG53165)
are to be assumed not to be disposals which paragraph 6 excludes from the exemptions.