In 2009, I purchased 15,000 shares of £1 each in an approved enterprise investment scheme. I claimed 40% tax relief (£6,000) in the year of purchase, and I also offset £15,000 against a capital gains liability, resulting in a further £3,000 tax deferral. However, the shares became worthless although the company is still trading, so I gave them away via a stock transfer form for nil proceeds in 2015/16. Can I offset the £6,000 net loss against my income in 2015/16?

Arthur Weller replies:
If you look at HMRC’s guidance (www.gov.uk/hmrcinternal-manuals/venture-capital-schemesmanual/vcm20100, 20110 and 20130), you can see that you can do as you have written. The loss is reduced by the income tax relief previously claimed, and by the old deferred capital gain, but the net loss can be offset against income. If you also look at VCM74090 you can see that the market value rule applies, but if you can demonstrate that the shares were worthless you should not have a problem.