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HMRC internal manual

Capital Gains Manual

Shares acquired on same day: election for alternative treatment: special rules for Enterprise Investment Scheme shares

TCGA92/S105A and TCGA92/S105B do not displace any of the special rules for Enterprise Investment Scheme (EIS) shares, see ICTA88/PartVII/ChapterIII and, for shares issued after 5 April 2007, Part 5 ITA07.

The EIS rules already provide for shares acquired on the same day to be put into different categories and treated as disposed of in a particular order. If there are approved-scheme shares and other shares in any particular EIS category, the effect of making an election under TCGA92/S105A is that within each EIS category the other shares will be treated as disposed of before the approved-scheme shares. See TCGA92/S105A (4).

For the purposes of the election, where shares to which EIS Income Tax or deferral relief is attributable are transferred between husband and wife or between civil partners of each other, the person to whom the shares are transferred is treated as having acquired the shares on the date they were issued. See TCGA92/S105A (7).