Share Loss Relief Calculator (Section 131 ITA 2007)
Calculate income tax or CGT relief on losses from qualifying unlisted shares (EIS, SEIS, or s131 ITA 2007). Offset losses against income.
Share Loss Relief Calculator
Frequently Asked Questions
What is share loss relief?
Section 131 ITA 2007 allows individuals to claim income tax relief on capital losses arising on shares in qualifying unquoted trading companies that they subscribed for (not bought on a secondary market).
Which shares qualify for loss relief against income?
Shares that you subscribed for (not bought secondhand) in a qualifying unquoted trading company. EIS and SEIS shares also qualify. The company must have been a qualifying trading company when the shares were issued.
Can I claim share loss relief against previous years' income?
Yes — the loss can be set against income of the same tax year or the previous tax year. You can choose which year is most beneficial.
What if the shares are worth very little but not zero?
You must either sell the shares or claim a negligible value claim (HMRC agrees the shares are worth negligible value). You can then treat the shares as having been sold and repurchased at nil cost.
How is the net loss calculated for EIS/SEIS shares?
For EIS shares, the income tax relief received (30% × investment) reduces the base cost. For SEIS shares, the 50% relief received is deducted. The net loss is then the reduced cost less any proceeds.
Is there a time limit to claim share loss relief?
Yes — you must claim within 4 years after the end of the tax year in which you dispose of the shares (or make the negligible value claim).
Can a limited company claim share loss relief?
No. Section 131 is for individuals only. Companies use different rules for trading losses and investment write-offs.
Do I need to report this on my self assessment?
Yes. Include the loss relief claim in the additional information section of your self assessment return. Keep supporting documentation.
Can I carry the loss forward?
If you claim against income (S131), any unused amount can be carried forward against future gains. You cannot carry forward unused income loss relief to future income.
What if the company is in administration but not yet dissolved?
You can make a negligible value claim to trigger the loss, then claim share loss relief. The shares don't need to be formally worthless if HMRC accepts they are of negligible value.
Are losses on AIM shares eligible?
AIM shares are traded on a recognised exchange so are NOT 'unquoted' for S131 purposes unless the company meets HMRC's definition of an unquoted company. Some AIM shares may qualify for BADR but not S131 relief.
What records should I keep?
Keep your share subscription agreement, any EIS3/SEIS3 certificates, the company's articles and financial statements, and evidence of the disposal or negligible value claim.