Incorporation relief claims must include business and share details

Incorporation relief for business transfers on or after 6 April 2026 requires a claim containing the information HMRC specifiesGOV. HMRC’s new guidance sets out the supporting business, company, share and calculation details, and explains how to include them with Self Assessment and CGT on UK Property returns.

The claim will normally accompany the tax return for the year of transfer. The return should identify the disposals of chargeable assets covered by the claim and the total relief sought. Supporting details must be in writing, but HMRC prescribes no particular format. Digital filers should upload an attachment; paper filers can use box 54 of SA108.

Claimants must describe the transferred business’s activities and identify whether the transferor is an individual, trustee, partnership or LLP. They must give the recipient company’s name and company registration number or equivalent. The claim must also state the number and type of shares issued in exchange and their issue date.

The computation must show whether full or partial relief is claimed. It should identify each chargeable business asset and its value at transfer, alongside the total value of non-chargeable assets. It must show the initial cost of the new shares and, where consideration is only partly shares, the value of the other consideration. The relief claimed reduces the original share cost to establish the base cost for future disposals. HMRC says a valuation of the shares themselves is not required or expected because their initial cost is calculable; it ideally wants the computation broken into the three stages described in CG65740.

The claim deadline is the first anniversary of the 31 January following the tax year of transferGOV. HMRC’s example places a transfer on 19 July 2026 in tax year 2026–27 and gives 31 January 2029 as the final claim date. HMRC states that a section 162 claim does not alter the criteria for filing through the CGT on UK Property Account.

Incorporation relief does not change the criteria for filing a CGT on UK Property return. Where that return is required, the statutory filing limit is the 60th day after completionLegislation. Any required payment on account is payable on the filing date for the return. HMRC identifies partial relief leaving some gain chargeable as an example where a return and payment may be needed.

For such a property return, claimants should enter the relief amount when prompted and attach all the supporting claim information. Online filers upload the attachment; paper filers can supply a letter alongside the return. The claim should also be included in the tax return for the year of disposal.

The claim requirement was inserted into section 162 of the Taxation of Chargeable Gains Act 1992Legislation by section 39 of the Finance Act 2026; the property-return and payment obligations are in paragraphs 3 and 6 of Schedule 2 to the Finance Act 2019.