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Home / Simons-Taxes /Personal and employment tax /Part E3 Reliefs for investors /Division E3.7 Share loss relief /Share loss relief / E3.709 Share loss relief—share exchanges and company reorganisations
Commentary

E3.709 Share loss relief—share exchanges and company reorganisations

Personal and employment tax

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).

This article discusses the complexities where the original shares have been subject to share-for-share exchanges or reorganisations.

Share exchanges

The following provisions do not apply in relation to shares to which EIS income tax relief is attributable, and do not apply at all to shares issued before 6 April 19981. Otherwise, they apply where, by means of an exchange of shares, all of

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