reinvestment relief

reinvestment relief
Capital Gains Tax on the disposal of a capital asset can be deferred if the amount of the gain is reinvested in a qualifying trading company. The gain is taken into account in valuing the cost of the shares. If they are eventually sold with a gain, the capital gains tax will be paid at that time. Reinvestment relief and EIS relief can be combined.

Easyform Glossary of Law Terms. — UK law terms.

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