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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Substantial shareholdings exemption: interaction with other legislation - recovery of held-over gain - section 165 TCGA 1992


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.