569-500 Cases where maximum SI relief not obtained
SI relief may have only been given on part of the amount invested because that amount exceeded the maximum of £1m on which SI relief is given. In that case, the gain is apportioned and the CGT exemption is restricted to an amount attributable to the assets on which SI relief was given.
The amount of the exemption is given by the following formula:
Total gain x [D/(I xR)]
D is the amount of the SI relief actually given
I is the amount of the actual investment (ignoring the maximum threshold; see below); and
R is the SI rate applicable for the tax year in which relief was obtained