Introduction Overview Overview Section 75: Limits on relief
281.This section deals with the calculation of the amount of share loss relief. It is based on section 576(1) of ICTA.
282.Section 576(1) of ICTA provides that, if the investor company disposes of shares for which it has subscribed and which form part of a holding, the share loss relief in relation to those shares is not to exceed the sums which would have been allowable as deductions in computing the allowable loss for the purposes of corporation tax on chargeable gains if the shares had not formed part of the holding.
283.Section 75 refines the circumstances in which the provision applies in connection with the changes in section 76 described in Change 16 in Annex 1. See Change 13 in Annex 1.
284.Subsection (8) explains what is meant by shares “that are not capable of being qualifying shares” for the purposes not only of this section but also of section 76. Change 14 in Annex 1 contains a detailed explanation of why a mixed holding is defined for the purposes of section 76 in terms of a holding which includes such shares.
285.Subsection (9) extends this meaning for the purposes only of subsection (5) to cover reorganisations involving the issue of shares of a different class.