VCM71030 - Share Loss Relief: definitions: 바카라 사이트˜shares바카라 사이트™
What follows is written in terms of individual claimants, and references are to ITA 2007. The meaning for company claimants is virtually the same, and there is a table at the end giving the equivalent sections in CTA 2010 and their precursors in ICTA 1988.
The term 바카라 사이트˜shares바카라 사이트™ includes stock but does not include shares or stock which do not form part of a company바카라 사이트™s ordinary share capital. The meaning of 바카라 사이트˜ordinary share capital바카라 사이트™ is given at ITA07/S989: it means all of a company바카라 사이트™s issued share capital (however described), other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the company바카라 사이트™s profits. Thus fixed-rate preference shares, for instance, are not part of a company바카라 사이트™s ordinary share capital and are not 바카라 사이트˜shares바카라 사이트™ for the purpose of Share Loss Relief. Guidance on the meaning of 바카라 사이트˜ordinary share capital바카라 사이트™ can be found in the Company Taxation Manual at CTM00511.
바카라 사이트˜Stock바카라 사이트™ is another form of share capital; but the term does not include 바카라 사이트˜loan stock바카라 사이트™ or any form of loan capital. Subject to this, and to the exceptions given below, the terms 바카라 사이트˜stock바카라 사이트™ and 바카라 사이트˜shares바카라 사이트™ used in connection with a limited company are interchangeable for the purposes of Share Loss Relief. For more information, see .
This definition of 바카라 사이트˜shares바카라 사이트™ is modified or disapplied altogether for certain specific purposes so that the Share Loss Relief regime is aligned with corresponding provisions of the Enterprise Investment Scheme. The modifications etc are at ITA07/S151(3) to (6).
For the purposes of determining whether a disposal of part of certain mixed holdings includes qualifying shares, or which qualifying shares such a disposal relates to, the term 바카라 사이트˜shares바카라 사이트™ does not include stock. This modification does not apply to all mixed holdings, but only to those which include either
- shares issued before 1 January 1994 in respect of which relief has been given under the Business Expansion Scheme (BES) and not withdrawn, or
- shares to which EIS relief is attributable, or
- shares to which deferral relief is attributable under Schedule 5B to TCGA 1992.
(This modification is at section 151(3), and it refers to the identification rules at ITA07/S148(3)(b) and (6).)
For the purposes of deciding whether a company is an 바카라 사이트˜excluded company바카라 사이트™ the definition of shares includes stock (as above) but shares or stock not forming part of the company바카라 사이트™s ordinary share capital are not excluded. Hence the scope of the term 바카라 사이트˜shares바카라 사이트™ is broadened for this purpose. (This modification is at section 151(4) and it refers to the definition of excluded company at section 151(1))
The meaning of 바카라 사이트˜shares바카라 사이트™ is similarly broadened when considering whether Share Loss Relief can be claimed after a share-for-share exchange (section 151(4) refers also to section 145(1) to (4)), and when considering whether the amount of Share Loss Relief should be restricted to mitigate the averaging effect of the share pooling rules in the TCGA 1992 (section 151(4) refers also to section 147(3) to (6), (8) and (9).) However, in the context of share-for-share exchanges, 바카라 사이트˜shares바카라 사이트™ in the phrase 바카라 사이트˜shares to which EIS relief is not attributable바카라 사이트™ at section 145(1) still excludes shares or stock which do not form part of a company바카라 사이트™s ordinary share capital.
The definition of shares in section 151 does not apply when, for the purposes of determining whether a company is a qualifying trading company, you are considering the business activities of a group of companies and specifically considering whether to ignore the holding of 바카라 사이트˜shares in 바카라 사이트¦ a qualifying subsidiary of the parent company바카라 사이트™. (Section 151(6) disapplies the definition for the purposes of section 137(5)(a).)
The definition of shares in section 151 does not apply when, for the purposes of determining whether a company is a qualifying trading company, you are considering whether it met the gross assets requirement around the time of the share issue. Specifically, it does not apply when identifying the gross assets of each member of a group of companies, for which purpose you ignore 바카라 사이트˜shares in 바카라 사이트¦ another member of the group바카라 사이트™. (Section 151(6) disapplies the definition for the purposes of section 142(3).)
The definition of shares in section 151 does not apply when, for the purposes of determining whether a company is a qualifying trading company, you are considering whether it met the unquoted status requirement. Specifically, it does not apply when you are considering whether there exist arrangements for the company to become a subsidiary of another company 바카라 사이트˜by virtue of an exchange of shares, or shares and securities,바카라 사이트¦바카라 사이트™. (Section 151(6) disapplies the definition for the purposes of section 143(1)(c) and (2).)
The above is written in terms of individual claimants and with references to ITA 2007. The following table shows corresponding references in CTA 2010 and ICTA 1988 which apply to claims to Share Loss Relief by companies.
Type |
ITA 2007 |
CTA 2010 |
ICTA 1988 |
|---|---|---|---|
Shares: general definition |
S151(1) |
S90(1) |
S576L(1) |
Exclusion of 바카라 사이트˜stock바카라 사이트™ from definition for some share identification purposes |
S151(3) |
No equivalent |
No equivalent |
Exclusion of 바카라 사이트˜stock바카라 사이트™ for most purposes of the excluded company definition |
S151(4) & (5) |
S90(3) & (4) |
S576L(2) & (3) |
This definition not applied for purposes of the trading requirement (in part); the unquoted status requirement, and the gross assets requirement |
S151(6) |
S90(5) |
S576L(4) |
Bonus shares & corresponding bonus shares: definition |
S151(1) |
S90(1) |
Not defined |
Share of the same class (Note 1) |
S151(2) |
S90(2) |
Not defined* |
Ordinary share capital: definition |
S989 |
S1119 |
S832(1) |
* These definitions apply for the purpose of the definition of 바카라 사이트˜corresponding bonus shares바카라 사이트™. There is a definition of shares of the same class in ICTA, at section 576(1D), but it applies only for the purposes of determining which shares together constitute a holding of shares