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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Roll-over relief on transfer of shares to Share Incentive Plan: acquisition conditions: replacement assets

To qualify for relief, the person making the disposal must acquire replacement assets, TCGA92/SCH7C/PARA3. These are assets which are:

  • chargeable assets in relation to the claimant at the time they are acquired

but are not

  • shares in, or debentures issued by, the company or any company which is in the same worldwide group as the company. The word, group, uses the wider definition in TCGA92/S171 introduced by FA2000/SCH29.

An asset is a chargeable asset if a chargeable gain would arise on its disposal. This assumes that the person making the disposal is either resident or ordinarily resident* in the United Kingdom or, if not, is carrying on a business here. An asset will not qualify as a replacement asset if any gain on its disposal would not be subject to Capital Gains Tax by virtue of Double Taxation Relief.

There are special rules which apply where the replacement asset is:

  • property which qualifies for private residence relief


  • shares which qualify for relief under the Enterprise Investment Scheme.

CG61982-CG61983 tell you about these.

  • For 2013-14 and subsequent years ordinary residence does not need to be considered.