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KEVIN SLEVIN issues a warning of unexpected tax consequences where there are deferred capital gains
KEY POINTS
- Effect of deferrals under TCGA 1992 s 116 and Sch 5B being brought back into charge.
- Interaction with entrepreneurs’ relief.
- Effect can be a 55% increase in tax liability.
- Differences between QCB and EIS deferrals
This article looks at what happens to disposals on or after 23 June 2010 which trigger one of the following:
- a pre-6 April 2008 gain previously deferred under TCGA 1992 s 116(10) as a share for qualifying corporate bond (QCB) exchange;
- a pre-6 April 2008 gain previously deferred under TCGA 1992 Sch 5B under the enterprise investment scheme (EIS) deferral provisions; and
- a similar share for QCB or EIS deferral after 5 April 2008 but before 23 June...
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