Offsetting losses on shares against income

Where certain conditions are met, allowable losses arising on a disposal of shares in a qualifying trading company can be claimed against income for Income Tax or CT purposes. To qualify the shares: - must be ordinary shares, and - must have been subscribed for,(not purchased from or gifted by a previous holder), and - must be in an 'unquoted company'. Relief is available where the investment was in shares in a trading company, or in the holding company of a trading group. The relief is intended to provide investors in unlisted trading companies with some degree of financial insurance against failure, and is part of the Government's assistance to small businesses. Claims can be made by individuals (under the old ICTA88/S574 now in the new ITA 2007).