tax treatment for losses on SEIS shares

tax treatment for losses on SEIS shares

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I am getting conflicting advice, I have been advised by our tax support consultants that if a loss is made when shares subscribed to under SEIS are sold, that loss can only be taken as a capital loss, and that the only circumstances where it can be taken against income is if the shares are still owned but have a negligible value.

I was under the impression from ITA2007 that a loss incurred on shares under these circumstances could be taken against either as capital or against income?

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By Montrose
14th Feb 2018 14:59

A loss on the disposal of any shares subscribed in a qualifying trading company [which an SEIS will almost certainly have been] can qualify for income tax relief. A negligible value claim is just a special case of a disposal.
Have a look at the Guidance Notes in HS286

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By kaff
14th Feb 2018 18:45

I agree with Montrose. It’s Chapter 6 of Part 4 of ITA (sorry, am travelling at present so don’t have the exact section to hand). Slightly worrying that ‘tax support consultants’ can’t look that up and advise you properly.

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