VCM31000 - EIS disposal relief: losses

TCGA92/S150A (1)

An investor can claim a loss on the disposal of EIS shares even if the Income Tax relief is not withdrawn. Where such a loss arises it must be reduced by the amount of any Income Tax relief which remains attributable to the shares sold. Indexation allowance to April 1998 is not allowable because of the general rule that indexation allowance cannot be used to create or increase a loss, see CG17700 onwards. But an investor may be able to claim transitional relief on a disposal made on or before 5 April 1995, see CG17800 onwards.