Part 4

Loss relief
Chapter 5

Losses on disposal of shares

Share loss relief against income

Eligibility conditions
69
1
These are the eligibility conditions mentioned in section 68(1)(b) that a company which has subscribed for shares in a qualifying trading company must meet to be eligible for share loss relief on the disposal of the shares.
2
Condition A is that the subscribing company (“the investor”) is an investment company on the date of the disposal of the shares (“the disposal date”).
3
Condition B is that the investor has been an investment company—
a
for a continuous period of 6 years ending on the disposal date, or
b
for a shorter continuous period ending on the disposal date and has not before the beginning of that period been a trading company or an excluded company (see section 90(1)).
4
Condition C is that the investor was not associated with, or a member of the same group as, the qualifying trading company at any time during the period—
a
beginning with the date when the investor subscribed for the shares, and
b
ending with the disposal date.
5
For the purposes of condition C, two companies are associated with each other if—
a
one controls the other, or
b
both are under the control of the same person or persons.
6
Sections 450 and 451 (which contain provision as to when a person is to be taken to have control of a company) apply for the purposes of subsection (5).
Pt. 4 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Risk Transformation (Tax) Regulations 2017 (S.I. 2017/1271), regs. 1(1), 10
Pt. 4 excluded (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), s. 1(5)(e) (with ss. 15(1), 16(1))