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 35: Share loss relief: time of disposal: section 151
This change makes explicit the tax year in which the disposal is to be treated as occurring for the purpose of share loss relief.
The availability of share loss relief is dependent upon an allowable loss being incurred for capital gains tax purposes and this can only be incurred on a disposal within the meaning given in TCGA.
The provisions of TCGA which determine in which tax year a disposal occurs, including in particular section 28 of that Act, do not apply to sections 574 to 576 of ICTA. Share loss relief is given in practice for the tax year in which the disposal is made or treated as made for the purposes of capital gains tax in accordance with TCGA.
Section 151(8) contains explicit provision to this effect.