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An individual who incurs an allowable loss (for capital gains tax purposes) on the disposal of qualifying shares (see E3.702) may claim to set off that loss against total income for¹:

1. Ìý

   (a)ÌýÌýÌýÌý the tax year in which the loss was incurred (the 'year of loss'), and/or

2. Ìý

   (b)ÌýÌýÌýÌý the preceding year

The relief is subject to a cap as described below. See E3.708A for other limits on the amount of share loss relief.

Relief is available whether the disposal is²:

1. Ìý

   •ÌýÌýÌýÌý by way of a bargain at arm's length

2. Ìý

   •ÌýÌýÌýÌý by way of a distribution on the dissolution or winding-up of the company in which the shares are held (for guidance where there is more than one distribution in the course of a winding-up, see VCM74100)

3. Ìý

   •ÌýÌýÌýÌý the result of a claim under TCGA 1992, s 24(2) (see C1.321) that the shares have become of negligible value, or

4. Ìý

   •ÌýÌýÌýÌý the result of applying the rule in TCGA 1992, s 24(1) (see