Taxation of Chargeable Gains Act 1992 section 236R

No section 236Q relief if disqualifying event in next four tax years

Section 236R withdraws or prevents relief on deemed disposals to employee ownership trusts where a disqualifying event occurs within the four tax years following the deemed disposal.

• Relief under section 236Q is blocked if a disqualifying event occurs in any of the four tax years after the tax year in which the deemed disposal arises
• No new claim for relief may be made on or after the date of the first disqualifying event, and any existing claim is automatically revoked
• All chargeable gains and allowable losses must be recalculated as if the claim had never been made, with HMRC empowered to make any necessary adjustments without time limit
• A disqualifying event has the same meaning as for section 236O (direct disposals to employee ownership trusts), adapted so that references apply to the deemed disposal, the acquiring settlement, and the relevant company