The above brief entitled ‘Share Loss Relief - relief for subscriptions by joint owners or nominees Sections 131 to 151 ITA 2007 (formerly Sections 574 to 576L ICTA 1988)’ explains a change in HMRC practice on relief against income for capital losses made on shares subscribed for in qualifying trading companies (‘share loss relief’). This change of practice applies where individuals subscribe for a joint holding of shares, or subscribe for shares through a nominee.

HMRC have reconsidered the practice on share loss relief for shares to which EIS income tax relief is not attributable. 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.

An individual who wants to claim share loss relief must do so within one year from the normal self assessment filing date for the year in which the loss occurs. So a claim for a loss made in 2010/11 must be made by 31 January 2013.

This means that claims can still 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.

Claims to share loss relief are usually made in a self assessment return. Where a claim can now be made because of this change of practice it can be included in a self assessment return that has not yet been submitted. Or returns that have already been submitted but are within the time limit for amendment may be amended.

In addition where there is an open enquiry into an existing claim to share loss relief for any tax year, including years before 2008/09, that claim can also be settled in accordance with this change of practice.

Further information is available at http://www.hmrc.gov.uk/briefs/cgt/brief4110.htm