ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change is in taxpayers’ favour in principle. But it is expected to have no practical effect as it is in line with current practice. Change 32: Share loss relief: nominees and bare trustees: section 149
This change makes clear that, if shares of the same class are held as to some directly by the individual and as to the others by a nominee or bare trustee for the individual, all the shares are included in a single holding of the individual for the purposes of section 148.
An individual who has subscribed for shares may subsequently wish to transfer the shares into the name of a nominee or bare trustee for the individual. On a disposal of the shares on behalf of the individual by the nominee or bare trustee, the allowable loss for capital gains tax purposes and the entitlement to relief under section 574 of ICTA is that of the individual not that of the nominee or bare trustee.
Section 311 of ICTA (rewritten as section 250 of this Act) includes provisions equivalent to those in section 149(3). Section 311 of ICTA applies to shares to which EIS relief is attributable for the purposes of share loss relief, by virtue of section 305A of that Act. This change expressly also applies those provisions to shares to which EIS relief is not attributable.