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HMRC internal manual

Capital Gains Manual

Roll-over relief on transfer of shares to an approved Share Incentive Plan: Introduction

A new roll-over relief is introduced at TCGA92/S236A and TCGA92/SCH7C with effect from 28 July 2000. This relief is designed to encourage shareholders wanting to dispose of their shares to sell them to the trustees of an approved Share Incentive Plan established for the benefit of all the employees of the company. This relief lets shareholders other than companies defer capital gains tax when they dispose of unlisted shares. It is available to shareholders in all unlisted companies that are not subsidiaries of other companies whether or not the subsidiary is a trading company. The shareholders must acquire replacement assets which are chargeable assets for Capital Gains Tax. There is no charge to Capital Gains Tax until the disposal of the replacement assets.

The relief is not withdrawn if the Share Incentive Plan loses Inland Revenue approval. The relief is available for disposals after 27 July 2000.

If you need to know about

  • gifts to employee trusts generally, see CG36000+ 
  • Share Incentive Plans and employee share schemes generally, see CG56300+ and the Share Schemes Manual
  • transfers to the trustees of an Share Incentive Plan, see CG61970+ 
  • Employee Share Ownership Trusts generally, see BIM44000 onwards, TM3850+ & TM3900+.