Share loss relief is the generic term used to describe the relief contained in ITA 2007, ss 131–151 (Pt 4, Ch 6) which enables an individual to claim relief against income for what would otherwise be a capital loss on the disposal of qualifying shares. Qualifying shares are shares subscribed for in a qualifying trading company or shares on which income tax relief under the enterprise investment scheme (EIS).
For details of the relief, see E3.701A. For the definition of qualifying shares, see E3.702. For the meaning of qualifying trading company, see E3.704 (shares issued on or after 6 April 1998) and E3.706 (shares issued before 6 April 1998).
Restrictions to the amount of share loss relief
There are three restrictions as described below to the amount of share loss relief that could otherwise be claimed. The purpose is to prevent share loss relief exceeding the total amount the claimant has given for the shares1. An excess could otherwise occur because, where the disposal is from a mixed holding (ie some shares
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