Determination of loss where investment relief is attributable to sharesU.K.
94(1)This paragraph applies for the purposes of corporation tax on chargeable gains where—U.K.
(a)a company disposes of shares which were held by it continuously from the time they were issued until the disposal,
(b)investment relief is attributable to the shares (and not withdrawn in full as a result of the disposal), and
(c)apart from sub-paragraph (2), there would be a loss on the disposal.
(2)For the purpose of determining the gain or loss on the disposal the consideration given by the company for the shares is treated as reduced by the amount of the investment relief attributable to the shares immediately after the disposal.
(3)Any gain which accrues by virtue of sub-paragraph (2) is not a chargeable gain.
(4)Notwithstanding the definition of “allowable loss" in [F1section 1119 of CTA 2010] (interpretation of the Corporation Tax Acts), nothing in sub-paragraph (3) has effect in relation to any loss determined in accordance with sub-paragraph (2) to prevent it being an allowable loss.
Textual Amendments
F1Words in Sch. 15 para. 94(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 315(12) (with Sch. 2)