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.