The normal identification provisions relating to shares acquired after 6 April 1982 (TCGA 1992, s. 104, 105, 107: see ¶556-500ff.) do not apply to shares to which EIS income tax relief is attributable (TCGA 1992, s. 150A(5)).

The basic principle is that a disposal is identified with an earlier acquisition of shares of the same class in preference to a later acquisition: the ‘FIFO’ principle. (ITA 2007, s. 246(2), as applied by TCGA 1992, s. 150A(4)).

Where shares of the same class are acquired on the same day, disposals are matched in the following order:

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.