PART XIII MISCELLANEOUS SPECIAL PROVISIONS
F2Chapter 5AShare loss relief
Relief for losses on unquoted shares in trading companies
C2C1576 Provisions supplementary to F1sections 573 and 575.
1
F3Subject to F7subsection (1C) below, where F8a company holds shares in F9another company which constitute a holding and comprise—
a
shares for which F10it has subscribed (“qualifying shares”); and
b
shares which F10it has acquired otherwise than by subscription,
any question whether a disposal by F10it of shares forming part of the holding is of qualifying shares shall be determined by treating that and any previous disposal by F10it out of the holding as relating to shares acquired later rather than earlier; and if a disposal by F10it is of qualifying shares forming part of a holding and F10it makes a claim under section 573 F11. . . in respect of a loss incurred on their disposal, the amount of relief under that section on the disposal shall not exceed the sums that would be allowed as deductions in computing the loss if the shares had not been part of the holding.
F41A
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1B
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F61C
Where the holding mentioned in subsection (1) above comprises any shares—
a
to which investment relief is attributable under Schedule 15 to the Finance Act 2000 (corporate venturing scheme), and
b
which have been held continuously (within the meaning of paragraph 97 of that Schedule) from the time they were issued until the disposal,
any such question as is mentioned in that subsection shall not be determined as provided by that subsection, but shall be determined instead as provided by paragraph 93 of that Schedule (identification of shares on a disposal of part of a holding where investment relief is attributable to any shares in the holding held continuously by the disposing company).
For this purpose paragraph 93 of that Schedule shall have effect as if the references in it to a disposal had the same meaning as in subsection (1) above.
F131D
In this section “holding” means any number of shares of the same class held by one company in one capacity, growing or diminishing as shares of that class are acquired or disposed of.
For this purpose—
a
shares are not to be treated as being of the same class unless they are so treated by the practice of a recognised stock exchange or would be so treated if dealt in on such an exchange, and
b
subsection (4) of section 104 of the 1992 Act applies as it applies for the purposes of subsection (1) of that section.
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F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4A
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4B
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 13 Ch. 5A created (6.4.2007 with effect in accordance with s. 1034(1) of the affecting Act) by virtue of Income Tax Act 2007 (c. 3), Sch. 1 para. 117(3) (with Sch. 2)