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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Roll-over relief on transfer of shares to Share Incentive Plan: special cases: excluded assets

There are special provisions which deny relief if the replacement asset is a dwellinghouse, part of a dwelling house or land which qualifies for private residence relief orshares to which income tax relief is attributable under the Enterprise Investment Scheme(EIS). This paragraph deals with a dwelling house or land and CG61983deals with EIS shares.

CG64200+ tells you about private residence relief generally.You should refer to that if you are in doubt whether a replacement asset would qualify ornot.

The replacement asset will be treated as if it is not a chargeable asset in relation tothe claimant if at the time of the claim it is:

  • an asset which qualifies for private residence relief,

or

  • an option to acquire a dwelling house or land, where the option has been exercised and the subject of the option has become the only or main residence of the claimant or of their spouse or civil partner

The replacement asset will be treated as if it is not a chargeable asset in relation tothe claimant where after a claim has made

  • although the replacement asset was a chargeable asset and a dwelling house when relief was claimed, there is a time when it becomes the only or main residence of the claimant or of their spouse or civil partner qualifying for private residence relief

or

  • where the replacement asset was a chargeable asset in the form of an option to acquire a dwelling house or land when relief was claimed, the option has been exercised and the dwelling house or land becomes the only or main residence of the claimant or of their spouse or civil partner qualifying for private residence relief.

Any gain arising as a result is treated as accruing at the time the dwelling house orland became the only or main residence of the claimant or of their spouse or civil partnerqualifying for private residence relief and adjustments should be made accordingly.