CG67825 - Reliefs: employee-ownership trusts: conditions: the 'related disposal requirement': relevant only to TCGA92/S236H

TCGA92/S236H(4)(e) and (6)

Stipulate that TCGA92/S236H must not have applied in relation to any 바카라 사이트˜related disposal바카라 사이트™ by P, or a person connected with P, which occurs in an earlier tax year.

An earlier disposal is a 바카라 사이트˜related disposal바카라 사이트™ if

  • both the earlier and later disposals are of ordinary share capital of the same company, or
  • the earlier disposal is of ordinary share capital of a company that is, or at the time of the earlier disposal was, a member of the same group as the company whose ordinary share capital is the subject of the later disposal.

The effect of this is to limit the relief available to all claimants on disposals of shares in a particular company (or companies in the same group) to a single tax year.

Example 4

Dabih Widgets Limited has an issued share capital of 100 £1 ordinary shares. Dabih Widgets Limited EOT held 40 shares prior to the following events. Janet, who held 30 shares transferred half of her shareholding in the company to the trustees of the Dabih Widgets Limited EOT on 20 May 2015, from which time the EOT met the 바카라 사이트˜controlling interest requirement바카라 사이트™. She transferred the other half of her shares in the company to the trustees on 18 April 2016. Janet claimed relief in respect of the first transfer. The disposal on 20 May 2015 is a 바카라 사이트˜related disposal바카라 사이트™ in relation to the transfer on 18 April 2016, and it is one in respect of which relief has been given to Janet. No relief is due to Janet on the later disposal.

Example 5

John, who has been married to Janet for many years, transfers ordinary shares in Dabih Widgets Limited to the Dabih Widgets Limited EOT on 6 June 2016. John is a person connected with Janet. Janet바카라 사이트™s earlier disposals are 바카라 사이트˜related disposals바카라 사이트™ in relation to the transfer by John, who is therefore prevented from claiming relief on his disposal of shares in Dabih Widgets Limited.