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Expect the unexpected

24 August 2010 / Kevin Slevin
Issue: 4269 / Categories: Comment & Analysis , Capital Gains
KEVIN SLEVIN issues a warning of unexpected tax consequences where there are deferred capital gains


  • 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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