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Section 169VB: Qualifying shares, potentially qualifying shares and excluded shares

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part V: Transfer of business assets, business asset disposal relief and investors' relief — Chapter 5: Investors' relief

Where there is a disposal of all or part of (or of an interest in) a holding of shares in a company, this section applies to determine whether a share which is in the holding at the time immediately before the disposal ("the relevant time") is for the purposes of this Chapter—

a qualifying share,
a potentially qualifying share, or
an excluded share.

The share is a "qualifying share" at the relevant time if—

the share was subscribed for, within the meaning given by section 169VU, by the person making the disposal ("the investor"),
the investor has held the share continuously for the period beginning with the issue of the share and ending with the relevant time ("the share-holding period"),
the share was issued on or after 17 March 2016,
at the time the share was issued, none of the shares or securities of the company that issued it were listed on a recognised stock exchange,
the share was an ordinary share when issued and is an ordinary share at the relevant time,
the company that issued the share—
was a trading company or the holding company of a trading group (as defined by section 169VV) when the share was issued, and
has been so throughout the share-holding period,
at no time in the share-holding period was the investor or a person connected with the investor a relevant employee in respect of that company (within the meaning given by section 169VW), and
the period beginning with the date the share was issued and ending with the date of the disposal is at least 3 years.

The share is a "potentially qualifying share" at the relevant time if—

the conditions in subsection (2)(a) to (g) are met, but
the period beginning with the date the share was issued and ending with the date of the disposal is less than 3 years.

The share is an "excluded share" at the relevant time if it is, at that time—

not a qualifying share, and
not a potentially qualifying share.

This section is subject to Schedule 7ZB (disqualification of share where value received by investor).

In relation to a share issued on or after 17 March 2016 but before 6 April 2016, any reference in subsection (2)(h) or (3) to "3 years" is to be read as a reference to the minimum period.

In subsection (6) "the minimum period" means the period of 3 years extended by a period equal in length to the period beginning with the date the share was issued and ending with 5 April 2016.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.