CG53215 - Substantial shareholdings exemption: interaction with other legislation - reorganisation involving held over gain - section 116(10) TCGA 1992

TCGA92/SCH7AC/PARA34

Paragraph 34 Schedule 7AC TCGA 1992 applies when there is a gain held over under section 116(10) TCGA 1992 (see CG53822 onwards). It provides that the substantial shareholding exemption regime will not normally affect the chargeable gain or allowable loss that accrues under section 116(10)(b).

However, there is one exception to this provision. It does not apply when a gain or loss is held over because a convertible security ceases to qualify for the section 92 Finance Act 1996 treatment and moves fully into the Loan Relationship regime - see CFM6161.