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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Business Expansion Scheme: share identification rules

  • has acquired shares in respect of which relief has been given and not withdrawn at different times or
  • holds some shares in respect of which relief has been given and not withdrawn and other shares in the same company.

The normal share identification do not apply to BSS and BES shares of the same class in the same company, TCGA92/S150(4) and (5). Instead you use the BES rules set out in the version of ICTA88/S299 that applied before the introduction of the Enterprise Investment Scheme by FA94, TCGA92/S150(1).

Disposals out of holdings of the same class of shares in a company are identified in the following order -

  1. Shares for which relief given but not withdrawn under BSS,
  2. Shares for which relief given but not withdrawn under BES,

Shares within the above categories identified on a first-in, first out basis (“FIFO”) basis.

  1. Other shares.