HMRC drops CGT charge on clean share class switches

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HM Revenue & Customs has amended legislation to remove capital gains tax charges when selling down bundled assets to move into a clean share class.

A change in legislation means any capital gains tax charge will be rolled over until final disposal of the assets.

HMRC says it has made the changes to facilitate the move to clean share classes.

An HMRC spokesman says: “The changes have the effect of treating the new share class issued as the same asset as the old for which it was exchanged. This means that any CGT charge is rolled over until final disposal of the new share class holding.

Prior to the amendment, selling down assets in a bundled share class to buy into a clean share class carried a CGT charge.