VCM47250 - VC loss relief: mixed holdings: total disposal of holding: relief not restricted: example

ICTA88/S576 (1)

In this example all the shares are sold and the restriction at STEP 4 of VCM47150does not apply.

The facts are the same as those in the example at VCM47200 except that now the shares acquired by subscription cost £15,000 and the purchased shares cost £5,000. To find the VC loss relief potentially due go through the fours steps described in VCM47150.

Step 1

Compute the allowable loss in the usual way. This is £20,000 as in the previous example.

Step 2

Identify the qualifying and the non-qualifying shares. Again, there are 2,000 qualifying shares and 1,000 shares that do not qualify.

Step 3

Calculate the part of the allowable loss which arises on the qualifying shares. As before this is £13,333.

Step 4

Compare the figure in Step 3 of £13,333 with the actual cost of the qualifying shares, which is now £15,000. VC loss relief may be claimed on the lower figure of £13,333. The £6,667 balance of the loss is available as a capital loss.