The Government is changing the tax loss continuity rules to make it easier for firms to raise new capital without losing the benefit of their existing tax losses.

This applies to companies looking to take on investor finance with a change in shareholding.

The inprinciple announcement gives taxpayers raising capital a level of certainty to undertake these transactions, while also giving officials time to work through the detailed design of rules that can be included in a bill in the second half of 2020. The new rules will apply for the 2020-21 and later income years.

We would recommend you discuss this with us if you are considering making a change in shareholding at this time.