The following Corporation Tax guidance note Produced by Tolley in association with Jackie Barker of Wells Associates provides comprehensive and up to date tax information covering:
This guidance note explains the specific rules that apply on the disposal of shares by a company. If shares of the same class in the same company have been acquired on various occasions for different amounts, it is necessary to follow the specific rules to ensure that the disposals are matched with the relevant acquisitions.
Disposals are matched with acquisitions in the following order:
shares acquired on the same day as the disposal
shares acquired in the previous nine days on a first in, first out basis
shares from the section 104 pool
shares from the 1982 holding
shares purchased before 1965 on a last in first out basis
shares purchased after the date of disposal in order of acquisition
TCGA 1992, ss 105, 107
The disposal of shares may fall within the scope of the substantial shareholding exemption (see the Cases in which SSE applies guidance note). Where the di
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