E3.880 Exemption from CGT on the disposal of SEIS shares
A gain on SEIS shares is not a chargeable gain where the disposal takes place after three years from the date of the share issue, ie after the end of period of Period A (see E3.801)1.
It is a condition of the CGT exemption that SEIS income tax relief be attributable to the shares (see E3.801 and E3.850)2.
If the SEIS income tax relief is withdrawn or reduced (or if it was not given on the whole of the cost of the investment) then there is a restriction on the CGT exemption (see below). It is therefore important to identify the shares that have been disposed in order to assess the status of any SEIS income tax relief attributable to them.
Identification and attribution of shares
The general first in, first out CGT rules for identifying disposed shares, do not apply3. Instead, separate rules governing SEIS disposal relief are provided to identify disposals of shares4.
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