Income Tax (Trading and Other Income) Act 2005 section 454

Listed securities held since 26th March 2003: relief for losses

Section 454 provides for relief from income tax where a person makes a loss on disposing of listed deeply discounted securities, setting out how a loss arises and how relief is given for individuals and trustees respectively.

• A loss arises when the purchase price of deeply discounted securities (excluding incidental acquisition costs) exceeds the disposal proceeds (excluding incidental disposal costs)
• For non-trustees, relief is given by deducting the loss from net income in the tax year of disposal
• For trustees, the loss reduces the amount of profits charged under this chapter in the tax year of disposal
• Claims must be submitted no later than the first anniversary of the normal self-assessment filing date for the tax year in which the disposal takes place