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HMRC internal manual

Venture Capital Schemes Manual

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HM Revenue & Customs
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Share Loss Relief: individual and corporate claimants: corporate claimants: the claim and how relief is given (1)

A company must claim Share Loss Relief before the expiry of two years after the end of its accounting period in which the allowable loss is incurred.

Relief is always given, in the first instance, as a deduction in computing the company’s income for corporation tax purposes for the accounting period in which the loss on the shares is incurred. It is not open to the company to waive relief in this period if there is income from which it could be deducted. Subject to this, the company may also claim for any surplus relief to be deducted from its income in previous accounting periods, so far as they fall wholly or partly within the 12 months immediately before the period in which the loss is incurred. However, where the company claims relief in an earlier accounting period it must have been an investment company throughout that earlier period (so Condition B of the eligibility conditions (see VCM77030 and VCM71020) is slightly modified in these circumstances).

Where relief is claimed for an accounting period only part of which falls within the 12 months preceding the period of loss, the amount of relief is limited to the amount of the company’s income attributable the period within the 12 months computed on a time-apportionment basis.

The relevant statute is at CTA10/S70 and S72 (and previously at ICTA88/S573(2) and S573(3)).