CG53220 - Substantial shareholdings exemption: interaction with other legislation - recovery of postponed charge - section 140(4) TCGA 1992

TCGA92/SCH7AC/PARA35

Paragraph 35 Schedule 7AC TCGA 1992 applies where a chargeable gain has been postponed on a transfer of assets to a company that is not resident in the United Kingdom under section 140 TCGA 1992. A later disposal of shares that should trigger the recovery of the postponed gain could be exempted by the substantial shareholdings exemption regime. If this happens paragraph 35 provides that a chargeable gain arises at the item of the disposal of the shares equivalent to the gain that was postponed.