600O Interaction of relief with other provisions of this Act

Summary

This section provides for the sequence in which reliefs may apply, in the event that the disposal of eligible shares qualifies for more than one CGT relief.

Details

Section 600O provides that where either revised entrepreneur relief (section 597AA) or retirement relief (section 598 or 599) could also apply on the disposal of eligible shares, those reliefs shall apply instead where relief under those provisions is more favourable than if relief to the investor were to apply under this Chapter.

(1)The provisions that apply to a chargeable gain where relief would be available under this Chapter and section 597AA (revised entrepreneur relief) in respect of that gain are as follows.

(1)(a)Where revised entrepreneur relief applies to a disposal, in whole or in part, of eligible share, then where the amount of CGT payable by the qualifying investor is greater under this Chapter than the amount of CGT payable under revised entrepreneur relief, then the provisions of revised entrepreneur relief shall apply to that disposal.

(1)(b)Relief under this Chapter shall not apply to a disposal referred to in paragraph (a) that revised entrepreneur relief applies to.

(2)The provisions that apply to a chargeable gain where relief would be available under this Chapter and section 598 or 599 (retirement relief) in respect of that gain are as follows.

(2)(a)Where retirement relief applies to a disposal, in whole or in part, of eligible share, then where the amount of CGT payable by the qualifying investor is greater under this Chapter than the amount of CGT payable under the retirement relief provisions, then the provisions of retirement relief shall apply to that disposal.

(2)(b)Relief under this Chapter shall not apply to a disposal referred to in paragraph (a) that retirement relief applies to.

(3)Relief under this Chapter is not available to an investor in respect of shares for which relief has or will be claimed under Part 16. This includes the reliefs known as employment investment incentive, start-up capital incentive and start-up relief for entrepreneurs.

Relevant Date: Finance Act 2024