EU legal challenge to UK rules on losses on shares set against income

Tolley tax writers

It was announced on 19 July 2018 that the European Commission has formally requested that the UK amend the following rules to ensure they are compatible with EU law:

Provision	Relief available	Non-compliant condition
Losses on shares set against income for income tax purposes	Where capital losses are generated on EIS shares or otherwise qualifying shares in unquoted trading companies the losses can be set against the individual's income in the year of the loss and / or the previous tax year	A non-EIS company only qualifies if it carries on its business wholly or mainly in the UK (ITA 2007 s 134(5))
Capital loss on irrecoverable loan to trader	Normally ...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this article in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

It was announced on 19 July 2018 that the European Commission has formally requested that the UK amend the following rules to ensure they are compatible with EU law:

Provision	Relief available	Non-compliant condition
Losses on shares set against income for income tax purposes	Where capital losses are generated on EIS shares or otherwise qualifying shares in unquoted trading companies the losses can be set against the individual's income in the year of the loss and / or the previous tax year	A non-EIS company only qualifies if it carries on its business wholly or mainly in the UK (ITA 2007 s 134(5))
Capital loss on irrecoverable loan to trader	Normally ...