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HMRC internal manual

Venture Capital Schemes Manual

HM Revenue & Customs
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Share loss relief: individual and corporate claimants: individual claimants: type of company invested in: qualifying trading company: the role of the concept

In the context of individual claimants, there are two broad classes of company whose shares may qualify for Share Loss Relief on disposal. The first is companies which are qualifying companies under the Enterprise Investment Scheme rules in ITA07/PT5 (or previously under ICTA88/CHP7/PT3). This part of the guidance does not explain the requirements of this class further: for details see the EIS guidance at VCM10000+.

The second class consists of companies which are ‘qualifying trading companies’. This part of the guidance gives details of the meaning of this term and how that meaning has changed over time. SEIS companies (see VCM30000+) are not automatically ‘qualifying trading companies’, though they may qualify as such if the conditions are satisfied.