VCM31400 - EIS disposal relief: Income Tax relief for capital losses

ICTA88/S305A and ICTA88/S574

Because losses on the disposal of EIS shares are allowable an investor may be able to set them against their income by making a claim for VC loss relief under ICTA88/S574 or ITA/S131. Guidance on VC loss relief is at VCM45000 onwards. It is possible that losses on some EIS shares might not qualify for VC loss relief because, for example, the disposal was not such that relief might be available, see VCM45800. ICTA88/S305A provides that all shares to which EIS relief is attributable shall be treated as shares in a ‘qualifying trading company’ for the purposes of VC loss relief.