Taxes Consolidation Act 1997 section 626C

Treatment of assets related to shares

Section 626C exempts from capital gains tax gains arising to a company on the disposal of assets related to shares in another company, mirroring the exemption provided by section 626B for disposals of shares themselves.

• An asset related to shares includes share options, convertible securities giving rights over shares, and options over such convertibles.
• A gain on disposal of a related asset is exempt where the disposing company holds shares in the other company and a disposal of those shares would qualify for exemption under section 626B.
• The exemption also applies where a fellow group member holds the shares, provided a disposal of those shares by the disposing company would have met the section 626B conditions.
• For these purposes a group means a company together with all of its 51 per cent subsidiaries.