VCM49050 - VC loss relief: companies: introduction
ICTA88/S573
ICTA88/S573 permits investment companies which have allowable
losses on disposals of shares in unquoted companies to claim, where
certain conditions are met, that the losses should be set against
income, rather than against any capital gains.
In many respects the conditions for relief are the same as
for a claim to relief by individuals under ICTA88/S574. The
following paragraphs regarding VC loss relief for companies should
be considered in conjunction with the preceding paragraphs
describing VC loss relief for individuals.
In order to decide whether relief can be given on a claim by
a company under ICTA88/S573, you will need to consider whether
the:
- shares qualify, see VCM45100 onwards, but note that the statutory provision defining what counts as a subscription is ICTA88/S573 (6), not ICTA88/S574 (3),
- disposal qualifies, see VCM45800,
- claimant qualifies, see VCM49100 onwards.
The computation of the amount of the allowable loss that
qualifies for VC loss relief follows the same principles as
described in relation to claims to relief by individuals, see
VCM46000 onwards.
Guidance on how VC loss relief is allowed to an investment
company is given at
VCM49300 onwards.
