Where an asset to which social investment income tax relief (SITR) is attributable (see Division E3.9 and C3.1912)1 is disposed of three years or more after acquisition, any gain accruing on the disposal is not a chargeable gain2.
There is no requirement to make a claim; the gain is automatically exempt. This is supported by the archived HMRC guidance (see 'How to claim tax relief if you're an investor'). The current guidance is silent on this point, but the legislation is clear. However, the gain is only exempt where a claim has been made for income tax relief on the investment. If no claim is made, then any gain on the subsequent disposal of the investment is chargeable to capital gains tax3.
SITR CGT disposals—losses
Despite the fact that such a gain is exempt from tax, if the disposal creates a loss it is an allowable loss4. Where there would be a loss on disposal, the consideration for the asset is treated as reduced
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 15:48