Ken Moody planned a ‘back to basics’ article about income tax share loss relief, but then found that the ‘holistic’ picture is not so basic after all (and this is only an introduction)!
Share loss relief (SLR) applies to ‘qualifying shares’; shares to which income tax relief under the enterprise investment scheme (EIS) is ‘attributable’ are automatically qualifying shares.
Otherwise, the shares must be in a ‘qualifying trading company’ for which a specific regime of requirements applies for this purpose.
Restriction for income tax relief
Income tax relief obtained (and not withdrawn) under either the EIS or seed enterprise investment scheme (SEIS) must be deducted from the amount qualifying for relief (under ITA 2007, s 131), as shown by the following simple example:
