Capital gains exemption for investment in SME equity triggers tax if the company's shares or assets are sold early Capital gains on transfer of long term residential property are exempt to the extent the net consideration is invested in equity of an eligible newly incorporated manufacturing SME that the assessee controls; the company must use the subscription proceeds to purchase new plant and machinery within one year or deposit unutilised funds in specified institutions. Exemption is proportionate to amount invested and disallowed where the company's shares or its new assets are transferred within five years, bringing the exempt gain back into the assessee's income.