Paula Tallon examines tax reliefs for losses on shares
The general rule on capital losses is that they can only be offset against capital gains. However where an individual incurs a capital loss on the disposal of shares in an unquoted trading company a claim can be made to offset the loss against income provided certain conditions are met. This claim can be made for the year of the loss or for the previous tax year or both tax years. This is a valuable relief and thought should always be given at the outset of an investment to structure it in a way to ensure that this relief is available should the venture fail.
The shares must be qualifying shares. Qualifying shares are those in a qualifying trading company which were subscribed for by the...
