Introduction Details of the Schedule Part 2: Capital Gains Tax exemption for employee shareholder shares
28.Part 2 of the Schedule amends the Taxation of Chargeable Gains Act 1992 (TCGA).
29.Paragraph 18 of the Schedule inhibits the operation of the no gain no loss provisions for transfers between spouses and civil partners ensuring that the transferor benefits fully from the CGT relief and the transferee has a base cost on acquisition of the market value of the shares at the time of the transfer.
30.Paragraph 19 amends section 149AA of TCGA so that amounts treated as earnings for income tax purposes under Chapter 1 of Part 3 or new section 226A of ITEPA are deductible in computing gains and losses on employee shareholder shares, but no other consideration is treated as having been given for the acquisition of those shares.
31.Paragraph 20 introduces six new sections into Part 7 of TCGA relating to employee shareholders. These new sections provide for exemption from CGT and impose an upper limit on the value of the shares to which the exemption applies.