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CGT hold-over relief extended for SITR

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HM Treasury has laid regulations extending the availability of CGT hold-over relief for gains reinvested in qualifying businesses for social investment tax relief (SITR) until 6 April 2021. Under the current rules, hold-over relief for SITR investments ended on 6 April this year.

F(No. 2)A 2017 extended income tax relief for SITR investments until April 2021. However, due to an oversight, the equivalent amendment was not made in relation to CGT.

The Taxation of Chargeable Gains Act 1992, Schedule 8B (Substitution of Dates) Regulations, SI 2019/1237, replace the existing end date of 6 April 2019 with a new end date of 6 April 2021, with effect from 4 November 2019.

Although this leaves a gap in availability of CGT hold-over relief for the period between 6 April and 4 November, HMRC has confirmed it will ensure that no taxpayers are adversely affected by this change and that investors can continue to claim CGT hold-over relief, subject to meeting the necessary conditions.

Issue: 1456
Categories: News