CG61975 - Roll-over relief on transfer of shares to Share Incentive Plan: relief not available: re-acquisition of shares

Relief is not available where there are arrangements for the shares which were disposed of to be reacquired either by the person making the original disposal, or by any person connected with them, before the conditions for the relief are satisfied. The only exception is where such shares are awarded or acquired as a participant under the terms of the Share Incentive Plan TCGA92/SCH7C/PARA2(4).

This prevents the shares being transferred to the trustees of a Share Incentive Plan before the 10% minimum stake, see CG61974, is acquired by the trustees and then transferred back.

As there may be different periods within which the trustees need to acquire a minimum stake, and the person making the disposal a replacement asset, the person making the original disposal could reacquire the shares and still obtain the benefit of the relief.

To prevent this, relief is not available if the person making the disposal, or any person connected with them, is able to reacquire the shares in the period:

• beginning with the disposal

and

• ending with the later of
  • the date of acquisition of the replacement asset; or
  • the date on which the 10 per cent minimum stake is acquired.