Section 151A: Venture capital trusts: reliefs., Taxation of Chargeable Gains Act 1992

A gain or loss accruing to an individual on a qualifying disposal of any ordinary shares in a company which—

was a venture capital trust at the time when he acquired the shares, and

is still such a trust at the time of the disposal,

shall not be a chargeable gain or, as the case may be, an allowable loss.

For the purposes of this section a disposal of shares is a qualifying disposal in so far as—

it is made by an individual who has attained the age of eighteen years;

the shares disposed of were not acquired in excess of the permitted maximum for any year of assessment; and

that individual acquired those shares for bona fide commercial purposes and not as part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In determining for the purposes of this section whether a disposal by any person of shares in a venture capital trust relates to shares acquired in excess of the permitted maximum for any year of assessment, it shall be assumed (subject to subsection (5) below)—

as between shares acquired by the same person on different days, that those acquired on an earlier day are disposed of by that person before those acquired on a later day; and

as between shares acquired by the same person on the same day, that those acquired in excess of the permitted maximum are disposed of by that person before he disposes of any other shares acquired on that day.

It shall be assumed for the purposes of subsection (1) above that a person who disposes of shares in a venture capital trust disposes of shares acquired at a time when it was not such a trust before he disposes of any other shares in that trust.

References in this section to shares in a venture capital trust acquired in excess of the permitted maximum for any year of assessment shall be construed as references to shares not acquired within the limit in section 709(4) of ITTOIA 2005; and the question whether shares are acquired within that limit shall be determined as it is for the purposes of Chapter 5 of Part 6 of that Act.

In this section and section 151B "ordinary shares", in relation to a company, means any shares forming part of the company's ordinary share capital (within the meaning given in section 989 of ITA 2007).

Section 151A: Venture capital trusts: reliefs.

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