Section 257TA — Income Tax Act 2007: Identification of investments on a disposal

Identification of investments on a disposal 257TA 1 The rules in subsections (2) and (3) are for determining which investments of any class are treated as disposed of for the purposes of—

a section 257R (disposal of the investment), or b section 257T (spouses or civil partners), if the investor disposes of some but not all of the investments of that class which the investor holds in the social enterprise.

2 Investments made on an earlier day are treated as disposed of before investments made on a later day.

3 Investments made on the same day are treated as disposed of in the following order—

a first, any to which neither SI relief nor hold-over relief is attributable, b next, any to which hold-over relief, but not SI relief, is attributable, c next, any to which SI relief, but not hold-over relief, is attributable, and d finally, any to which both SI relief and hold-over relief are attributable.

4 Any investments within paragraph (c) or (d) of subsection (3) which are treated by section 257N(7) as issued on an earlier day are treated as disposed of before any other investments falling within that paragraph of subsection (3).

5 The following—

a any investments to which SI relief is attributable and which were transferred to an individual as mentioned in section 257T, and b any investments to which hold-over relief, but not SI relief, is attributable and which were acquired by an individual on a disposal to which section 58 of TCGA 1992 applies, are treated for the purposes of subsections (2) and (3) as acquired by the individual on the day on which they were made.

6 In a case to which section 127 of TCGA 1992 applies (including the case where that section applies by virtue of an enactment relating to chargeable gains), shares included in the new holding are treated for the purposes of subsections (2) and (3) as acquired when the original shares were acquired.

7 In this section— “ hold-over relief ” means relief under Schedule 8B to TCGA 1992; “ new holding ” and “ original shares ” have the same meaning as in section 127 of TCGA 1992 (or, as the case may be, that section as applied by the enactment concerned).