This clause withdraws capital gains roll-over relief from all transfers of shares to qualifying employee share ownership trusts made on or after 6 April 2001.

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Clause 54 provides that no relief can be claimed for disposals of shares or interests in shares for disposals on or after 6^th April 2001.

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Capital gains roll-over relief for disposals made to qualifying employee share ownership trusts was introduced in 1990. The aim was to improve the appeal of qualifying shares ownership trusts (which had been established only the previous year) by giving a tax efficient route for family owners to pass ownership to the workforce. Very few claims have in fact been received under this provision, and it has not encouraged disposals of shares to qualifying employee share ownership trusts as was anticipated. Clause 48 and Schedule 9 of this Bill provide for a new more attractive relief to be available under the new all-employee share ownership plan introduced by Clause 47 and Schedule 8 . The original relief has therefore been rendered redundant.

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