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HMRC internal manual

Capital Gains Manual

Shares acquired on same day: election for alternative treatment: who can elect

To be able to make the election an individual must have acquired after 5 April 2002

  • shares of the same class, see TCGA92/S105B(6), in the same company
  • in different transactions
  • on the same day
  • in the same capacity.

These shares are referred to as ‘the relevant shares’ in TCGA92/S105A and TCGA92/S105B and in paragraphs CG56461 to CG56463 of this guidance.

The individual must also have acquired some of the relevant shares by exercising

  • EMI option(s) such that there is no, or only a certain limited, liability to Income Tax when the option was exercised, or
  • option(s) under an approved Company Share Option Plan, or an approved SAYE share option scheme, without incurring any Income Tax charge when the option was exercised.

The relevant shares acquired in either of these ways are called ‘the approved-scheme shares’ in TCGA92/S105A and TCGA92/S105B and in paragraphs CG56461 to CG56467 of this guidance.

There is one minor exception. No election can be made in respect of ordinary shares in a Venture Capital Trust, TCGA92/S105B (5).