Part V Transfer of business assets, business asset disposal relief and investors' relief
F1Chapter 5Investors' relief
The relief
169VCInvestors' relief
(1)
This section applies where—
(a)
a qualifying person disposes of a holding, or part of a holding, of shares in a company, and
(b)
immediately before that disposal some or all of the shares in the holding are qualifying shares.
(2)
If—
(a)
a chargeable gain accrues to the qualifying person on the disposal, and
(b)
a claim for relief under this section is made,
the rate of capital gains tax in respect of the relevant gain is F214%.
(3)
In subsection (2) “the relevant gain” means—
(a)
where immediately before the disposal all the shares in the holding are qualifying shares, the chargeable gain on the disposal;
(b)
where at that time only some of the shares in the holding are qualifying shares, the appropriate part of that chargeable gain (defined by section 169VD).
(4)
In this section—
(a)
subsection (1) is subject to section 169VH (disposals by trustees of a settlement: further conditions for relief), and
(b)
subsection (2) is subject to—
section 169VI (reduction of relief for certain disposals by trustees of a settlement), and
sections 169VK and 169VL (cap on investors' relief).
(5)
A reference in subsection (3) to the chargeable gain on the disposal, or to the appropriate part of that gain, is a reference to that chargeable gain, or (as the case may be) that part, after any deduction of allowable losses which is made in accordance with this Act from that chargeable gain or from that part.
(6)
For the application of this section to disposals of interests in shares, see section 169VJ.
(7)
In this Chapter a “qualifying person” means—
(a)
an individual, or
(b)
the trustees of a settlement.