CGT reliefs—transfers of shares to share incentive plans (SIPs)
C3.1919 Transfers of shares to SIPs
CGT rollover relief can be claimed where persons other than companies transfer eligible shares to share incentive plan (SIP) (formerly an employee share ownership plan (ESOP) trust)1. In order to make a successful claim, the proceeds of disposal (up to an amount at least equal to the gain on the transfer) must be reinvested in chargeable assets within a specified period. There are special provisions for shares and dwelling houses.
Transfers of shares to SIPs—qualifying conditions
Relief is available to a person, but not a company, who makes a disposal of shares (including a disposal of an interest in shares) to a SIP trust, provided that all of the following qualifying conditions are met, and a claim is made within two years of the acquisition of the replacement assets2. HMRC states that, although there is no provision to allow an extension to the time limit for the claim, cases where a claim is made outside the time limit and the taxpayer pursues the matter will be referred to Capital Gains Technical Group3:
• The disposal must be of shares which would themselves qualify as shares under the SIP rules, and the disposal must be to a SIP that, at that time, is a Schedule 2 SIP (before 6
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