Part 4Loss relief
Chapter 6Losses on disposal of shares
Share loss relief against general income
131Share loss relief
1
An individual is eligible for relief under this Chapter (“share loss relief”) if—
a
the individual incurs an allowable loss for capital gains tax purposes on the disposal of any shares in any tax year (“the year of the loss”), and
b
the shares are qualifying shares.
This is subject to subsections (3) and (4) and section 136(2).
2
Shares are qualifying shares for the purposes of this Chapter if—
a
EIS relief is attributable to them, or
b
if EIS relief is not attributable to them, they are shares in a qualifying trading company which have been subscribed for by the individual.
3
Subsection (1) applies only if the disposal of the shares is—
a
by way of a bargain made at arm's length,
b
by way of a distribution in the course of dissolving or winding up the company,
c
a disposal within section 24(1) of TCGA 1992 (entire loss, destruction dissipation or extinction of asset), or
d
a deemed disposal under section 24(2) of that Act (claim that value of the asset has become negligible).
4
Subsection (1) does not apply to any allowable loss incurred on the disposal if—
a
the shares are the subject of an exchange or arrangement of the kind mentioned in section 135 or 136 of TCGA 1992 (company reconstructions etc), and
b
because of section 137 of that Act, the exchange or arrangement involves a disposal of the shares.