Relief for losses
Should an investment in shares be disposed of at less than cost, it may be possible to relieve the loss arising against capital gains of that or a subsequent year.
Where the investment is in new shares subscribed for (ie not purchased) in a trading company which satisfies the EIS conditions, the loss arising may instead be relieved against income of that year or the previous year.
If there is any loss remaining after claiming relief against income, such loss is available for relief against capital gains either of the current or subsequent years.
Who can benefit from relief for losses?
- Individuals or trustees who are resident or
ordinarily resident in the UK.
- Separate rules apply for companies.
- The loss must arise as a result of a sale at
arm’s length, a liquidation or where the
investor is able to claim that the investment
has become of negligible value