Changes to share loss relief
HMRC have announced a change of practice in respect of share loss relief claims to set off losses against income rather than against capital gains.
This will affect capital losses arising on shares subscribed for in qualifying trading companies. The change applies to individuals who subscribe for a joint holding of shares or subscribe for shares through a nominee.
HMRC have confirmed that they will now accept claims to relief for losses on the disposal of qualifying shares where the subscription is made in joint names or through a nominee. This change may benefit individuals claiming share loss relief for shares to which enterprise investment scheme (EIS) income tax relief is not attributable.
Claims can be made for share loss relief in respect of joint subscriptions or subscriptions through nominees for 2008-09 and later years. Claims for 2008-09 must be made by 31 January 2011. HMRC have also accepted that where there is an open enquiry into an existing claim to share loss relief for any tax year, including years before 2008-09, that the claim can be settled in accordance with this change of practice.