CG50562 - Share identification rules: share disposals: companies from 1 April 1985
For companies and other concerns within the charge to
Corporation Tax, disposals of shares of the same class in the same
company held in the same capacity must be identified in the
following order.
- Against acquisitions on the same day, TCGA92/S105(1)(b),see CG50822.
- If the disposal accrued before 5 December 2005, against acquisitions in the prescribed period which is either one month or six months, TCGA92/S106, see CG51060 onwards. Note that TCGA92/S106 was repealed by FA06/S72 with effect for all disposals on or after 5 December 2005.
- Against acquisitions in the previous nine days, Section TCGA92/S107(3), see CG50840 onwards.
- Against shares in the `Section 104 holding', TCGA92/S107(7) and (8), see CG50590 onwards.
- Against shares in the `1982 holding', TCGA92/S107(7) and (9), see CG50820.
- Against shares held on 6 April 1965 on a last in first out (LIFO) basis, TCGA92/S107(7) and (9), see CG50970 onwards.
- Finally against subsequent acquisitions of shares, taking the earliest acquisition first, TCGA92/S105(2).
From 1 April 2002 gains made by companies on share disposals may, if the necessary conditions are satisfied, be exempt under TCGA92/SCH7AC (CG53000+). In such cases the shares disposed of are identified in the same way as for disposals giving rise to chargeable gains, so that for any future disposals which do not fall within the Schedule 7AC exemption the shares disposed of can be correctly identified.
