VCM46000 - VC loss relief: general: amount eligible for relief: general

ICTA88/S574

Subject to two exceptions, see VCM46200, the full amount of the capital loss on a qualifying disposal of qualifying shares is available for relief under ICTA88/S574. You compute the capital loss in the usual way - see the examples in CG58372 and CG58373. Remember that if EIS income tax relief has been allowed the consideration given for the shares deductible in computing the loss may have to be restricted by TCGA92/S150A (1), see VCM31000 onwards. If you agree that an allowable loss has been incurred on EIS shares you have to make a statistical report - see VCM31900.

There are special rules for identifying the loss that qualifies for VC loss relief if:

• the disposal is made from a pool of shares which includes qualifying and non-qualifying shares, see VCM47000 onwards,
• the shares disposed of were acquired on a share reorganisation, see VCM48000 onwards.