Share identification rules for companies (UK)
For a company disposing of shares, identification generally matches shares acquired on the same day first, then relevant acquisitions in the preceding nine days, and then the Section 104 holding of the same class. Apply statutory conditions and pooling rules to calculate allowable cost. The individual capital-gains-tax rules use a different subsequent-acquisition rule and must not be substituted for the corporate nine-day rule.
Worked example
A company disposes of 100 shares of one class. It acquired 20 of that class on the same day and 30 in the preceding nine days, with a sufficient Section 104 holding for the balance. Assuming the ordinary rules apply, 20 are matched same day, 30 to the preceding nine days and 50 to the pool.
Common mistake
Applying the individual 30-day subsequent-acquisition rule to a company’s disposal, or matching the pool before same-day and preceding-nine-day acquisitions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |