Taxation of Chargeable Gains Act 1992 Schedule 7C paragraph 3

Reinvestment of disposal proceeds

Section 3 of Schedule 7C sets out the conditions that must be met regarding the reinvestment of disposal proceeds into replacement assets in order to qualify for relief.

• The full disposal proceeds must be reinvested in qualifying replacement assets during the acquisition period, though an unconditional contract entered into during that period is sufficient even if completion falls outside it.
• Replacement assets must be chargeable assets in relation to the claimant immediately after acquisition, and must not be shares in or debentures issued by the relevant company or any company in its group.
• Partial reinvestment can still qualify, provided the amount not reinvested is less than the total gain arising on the original disposal.
• The definition of "group" follows the worldwide group definition in section 170 of the Taxation of Chargeable Gains Act 1992.