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HMRC internal manual

Venture Capital Schemes Manual

HM Revenue & Customs
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Share Loss Relief: individual and corporate claimants: individual claimants: more complex cases: disposal of shares forming part of a mixed holding: other points

Shares in a mixed holding to which section 127 TCGA 1992 applies

These are treated for the purposes of ITA07/S148 as acquired when the original shares were acquired. Where TCGA92/S127 applies, for chargeable gains purposes certain shares are treated as the same asset as other shares, and as acquired as those other shares were acquired. Section 127 does not have these effects for Share Loss Relief purposes, but where appropriate ITA 2007 and its predecessors apply similar treatments.

So when addressing the questions to which ITA07/S148 is directed, shares which are identified with other shares under TCGA92/S127 (for the purposes of that Act) are treated as having been acquired when the other, original, shares were acquired. This is the effect of ITA07/S149(2). For instance, when determining which shares have been disposed of from a holding which contains both corresponding bonus shares and the shares in respect of which they were issued, the bonus shares are treated as having been acquired at the same time as the original shares. There is guidance on the circumstances in which TCGA92/S127 may apply at CG51700+.

Shares held or disposed of by a nominee or bare trustee for an individual

These are treated for the purposes of ITA07/S148 as held or disposed of by that individual. So if some shares are held directly by an individual and other shares of the same class are held on his behalf by a nominee or bare trustee, both holdings are aggregated for the purposes of applying the share identification rules at ITA07/S148. This is the effect of ITA07/S149(3), and is the counterpart for share identification purposes in the context of Share Loss Relief of TCGA92/S60.