Section 809VN Order of disposals etcF1F2C1C2
United Kingdom
Subsection (2) applies if at any time income or chargeable gains of an individual are treated under section 809VA as not remitted to the United Kingdom as a result of—
more than one qualifying investment made in the same target company,
more than one qualifying investment made in companies in the same eligible trading group, or
qualifying investments made in an eligible trading company and in an eligible stakeholder company F3or eligible hybrid company that holds investments in that trading company.
In the application of section 809VG at that time—
treat the investments and holdings as if they were a single qualifying investment and a single holding, and
assume that a disposal of all or part of that deemed single holding affects the deemed single investment in the F4following order.
The order is—
so much of the qualifying investments as were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and then
in relation to whatever remains, the order in which the qualifying investments were made (that is to say, on a first in, first out basis).
Subsection (4) applies if at any time—
income or chargeable gains of an individual are treated under section 809VA as not remitted to the United Kingdom as a result of one or more qualifying investments,
in addition to that investment or those investments, a relevant person holds at least one other investment in the same target company, the same eligible trading group or a related eligible company, and
that other investment is not a qualifying investment.
In the application of section 809VG at that time—
treat the investments and holdings as if they were a single investment and a single holding, and
assume that a disposal of all or part of that deemed single holding is—
a disposal of so much of the deemed single holding as is from any qualifying investments that were made using money or other property that is designated as TRF capital (in a tax year after the tax year in which the investment is made) to the extent those qualifying investments were made using that money or other property, and
if any of the deemed single holding remains after the disposal referred to in sub-paragraph (i), a disposal of a holding from qualifying investments until the holdings from all the qualifying investments have been disposed of.
The reference to a “related eligible company”—
in relation to an eligible trading company, is to an eligible stakeholder company F7or eligible hybrid company that holds investments in that company, and
in relation to an eligible stakeholder company or eligible hybrid company, is to an eligible trading company in which that company holds investments.
Subsections (2) and (4) apply whether the investments in question are held by the same relevant person or different ones.
Annotations
Textual amendments
- F1
Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)
- F2
Ss. 809VA-809VO and cross-heading inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 7
- F3
Words in s. 809VN(1)(c) inserted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(7)
- F4
Words in s. 809VN(2)(b) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 10 paras. 19(4)(a), 21(1)
- F5
S. 809VN(2A) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 10 paras. 19(4)(b), 21(1)
- F6
S. 809VN(4)(b) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 10 paras. 19(4)(c), 21(1)
- F7
Words in s. 809VN(5)(a)(b) inserted (with effect in accordance with s. 15(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 15(7)
Modifications
- C1
Ss. 809L-809Z6 applied by 2005 c. 5, s. 643I(9) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
- C2
Ss. 809L-809Z6 applied by 2005 c. 5, s. 643A(6) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
Notes on Chapter A1
Modifications
- C1
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)
- C2
Pt. 14 Ch. A1 modified by 1988 c. 1, s. 762ZB(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)
- C3
Pt. 14 Ch. A1 modified by 1992 c. 12, s. 87B(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119))
- C4
Pt. 14 Ch. A1 modified (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 19(3)
- C5
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41F(8) (as substituted (6.4.2015) by Finance Act 2014 (c. 26), Sch. 9 paras. 5, 47 (with Sch. 9 para. 48))
- C6
Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643F(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
- C7
Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643N(3)(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))
- C8
Pt. 14 Ch. A1 modified (temp.) (for the tax years 2025-26, 2026-27 and 2027-28) by Finance Act 2025 (c. 8), Sch. 10 para. 18(1)(2)