http://www.legislation.gov.uk/ukpga/1992/12/section/151BTaxation of Chargeable Gains Act 1992An Act to consolidate certain enactments relating to the taxation of chargeable gains.1992-03-06texttext/xmlenStatute Law Database2026-09-18Expert Participation2026-04-06 Part IV Shares, securities, options <Abbreviation Expansion="et cetera" xml:lang="la">etc.</Abbreviation>Chapter III Miscellaneous provisions relating to commodities, futures, options and other securities<Addition ChangeId="key-0eb1cc1f7cc29e5d49508a84818a68bb-1536312824682" CommentaryRef="key-0eb1cc1f7cc29e5d49508a84818a68bb"> Venture capital trusts: supplementary.</Addition>151B1Sections 104, 105 and 106A shall not apply to any shares in a venture capital trust which are eligible for relief under section 151A(1).2Subject to the following provisions of this section, where—aan individual holds any ordinary shares in a venture capital trust,bsome of those shares fall within one of the paragraphs of subsection (3) below, andcothers of those shares fall within at least one other of those paragraphs,then, if there is within the meaning of section 126 a reorganisation affecting those shares, section 127 shall apply separately in relation to the shares (if any) falling within each of the paragraphs of that subsection (so that shares of each kind are treated as a separate holding of original shares and identified with a separate new holding).3The kinds of shares referred to in subsection (2) above are—aany shares in a venture capital trust which are eligible for relief under section 151A(1) and by reference to which any person has obtained or is entitled to claim relief under Chapter 2 of Part 6 of ITA 2007;bany shares in a venture capital trust which are eligible for relief under section 151A(1) but by reference to which no person has obtained, or is entitled to claim, any relief under that Chapter of that Part;cany shares in a venture capital trust by reference to which any person has obtained, or is entitled to claim, any relief under that Chapter of that Part but which are not shares that are eligible for relief under section 151A(1); anddany shares in a venture capital trust that do not fall within any of paragraphs (a) to (c) above.4Where—aan individual holds ordinary shares in a company (“the existing holding”),bthere is, by virtue of any such allotment for payment as is mentioned in section 126(2)(a), a reorganisation affecting the existing holding, andcimmediately following the reorganisation, the shares or the allotted holding are shares falling within any of paragraphs (a) to (c) of subsection (3) above,sections 127 to 130 shall not apply in relation to the existing holding.5Sections 135 and 136 shall not apply where—athe exchanged holding consists of shares falling within paragraph (a) or (b) of subsection (3) above; andbthat for which the exchanged holding is or is treated as exchanged does not consist of ordinary shares in a venture capital trust.6Where—athe approval of any company as a venture capital trust is withdrawn, andbthe withdrawal of the approval is not one to which section 281(3) of ITA 2007 applies,any person who at the time when the withdrawal takes effect is holding shares in that company which (apart from the withdrawal) would be eligible for relief under section 151A(1) shall be deemed for the purposes of this Act, at that time, to have disposed of and immediately re-acquired those shares for a consideration equal to their market value at that time.7The disposal that is deemed to take place by virtue of subsection (6) above shall be deemed for the purposes of section 151A to take place while the company is still a venture capital trust; but, for the purpose of applying sections 104, 105 and 106A to the shares that are deemed to be re-acquired, it shall be assumed that the re-acquisition for which that subsection provides takes place immediately after the company ceases to be such a trust.8For the purposes of this section—ashares are eligible for relief under section 151A(1) at any time when they are held by an individual whose disposal of the shares at that time would (on the assumption, where it is not the case, that the individual attained the age of eighteen years before that time) be a disposal to which section 151A(1) would apply; andbshares shall not, in relation to any time, be treated as shares by reference to which relief has been obtained under Chapter 2 of Part 6 of ITA 2007 if that time falls after—iany relief given by reference to those shares has been reduced or withdrawn,iiany chargeable event (within the meaning of Schedule 5C) has occurred in relation to those shares, oriiithe death of a person who held those shares immediately before his death;andca reference to the exchanged holding is, in relation to section 135 or 136, to the shares in the company referred to in that section as company A.Ss. 151A, 151B inserted (with effect in accordance with s. 72(8) of the amending Act) by Finance Act 1995 (c. 4), s. 72(3)Words in s. 151B(3)(c) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 315(2)(b) (with Sch. 2)Words in s. 151B(6)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 315(3) (with Sch. 2)Words in s. 151B(3)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 315(2)(b) (with Sch. 2)Pt. IV: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)S. 151B modified (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The Venture Capital Trust (Winding up and Mergers) (Tax) Regulations 2004 (S.I. 2004/2199), regs. 1(1), 6(1), 13(4)S. 151B(8)(c) substituted (with effect in accordance with Sch. 9 paras. 7, 8 of the amending Act) by Finance Act 2002 (c. 23), Sch. 9 para. 5(9)Word in s. 151B(7) substituted (with effect in accordance with s. 124(7) of the amending Act) by Finance Act 1998 (c. 36), s. 124(6)Words in s. 151B(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 315(2)(a) (with Sch. 2)Words in s. 151B(8)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 315(4) (with Sch. 2)Word in s. 151B(1) substituted (with effect in accordance with s. 124(7) of the amending Act) by Finance Act 1998 (c. 36), s. 124(6)