VCM45300 - VC loss relief: general: qualifying trading company: introduction

ICTA88/S574 (1) & ICTA88/S576 (4)

ICTA88/S574 (1) provides that VC loss relief may be claimed in respect of losses incurred on shares subscribed for in a ‘qualifying trading company’. It is the status of the company when the shares were subscribed for that matters - not the status of the company at the time of the disposal of the shares. ICTA88/S576 (4) defines what is a ‘qualifying trading company’.

The requirements a company has to meet to be a ‘qualifying trading company’ were changed significantly from 6 April 1998. Guidance on the conditions for shares issued before 6 April 1998 is at VCM45350 onwards and for shares issued on or after 6 April 1998 is at VCM45600 onwards.