Commentary

B9.115 Election to forgo incorporation relief

Business tax
Business tax | Commentary

B9.115 Election to forgo incorporation relief

Business tax | Commentary

B9.115 Election to forgo incorporation relief

A person to whom TCGA 1992, s 162 would otherwise apply (see B9.113) can elect to disapply the relief1.

The election must be made by notice to HMRC by a deadline determined as follows:

  1.  

    (a)     Where all the shares acquired on the transfer have been disposed of by the end of the tax year following that in which the transfer took place, the election must be made no later than 31 January following the end of that later tax year2.

  2.  

    (b)     If the shares are not all disposed of by the end of the tax year following the tax year in which the transfer took place, the deadline is extended by one year3.

So, for example, if the transfer takes place during the tax year 2018/19, and the shares are disposed of before 6 April 2020, the election has to be made before 1 February 2021, ie

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