CG53200 - Substantial shareholdings exemption: introduction - interaction with other legislation
TCGA92/SCH7AC/PART5 & TCGA92/SCH7AC/PARA4
Part 5 of Schedule 7AC TCGA 1992 (paragraphs 32 to 39) contains provisions setting out how the substantial shareholdings exemption regime interacts with other legislation. Guidance on this is organised as follows:
| CG53205 | Meaning of chargeable shares or assets |
|---|---|
| CG53210 | Negligible value claims |
| CG53215 | Reorganisations involving held over gain - section 116(10) |
| CG53220 | Recovery of postponed charge - section 140(4) |
| CG53225 | Appropriation of asset to trading stock |
| CG53230 | Recovery of held over gain - section 165 |
| CG53235 | Degrouping - time of deemed disposal & reacquisition |
| CG53240 | Effect of FOREX and loan relationships matching regulations |
Although not in Part 5, paragraph 4 Schedule 7AC TCGA 1992 also has a major impact on how the substantial shareholdings exemption regime interacts with various ‘no disposal’ provisions in the TCGA - sections 116(10), 127 and 192(2)(a). Simplifying somewhat,
- if these sections would normally result in a transaction being treated as if it did not involve a disposal of shares, but
- should there have been a disposal any gain accruing on that disposal would have been exempt under Part 1 of Schedule 7AC
the no disposal treatment is disapplied so that an exempt gain accrues instead. Guidance on paragraph 4 is at CG53170.