CGT Exemptions on EIS/SEIS Investments Clarification Please

Hello I am planning on investing in 2 EIS/SEIS Investments. Investment A and Investment B, £5,000 each. I have pair income tax of £2500 roughly. So both investments would give me the max income tax relief. My question is, is the CGT exemption apply to both investments even though i will have maximised by income tax relief and therefore irrelevant which investment i claim the relief on? Or is CGT exemption tied to me getting Income Tax Relief. So I can only get it on one and not both investments. On the hmrc Web page it says this "You may not have to pay Capital Gains Tax on a gain on your disposal of the SEIS shares, even if you did not receive Income Tax relief in full on all your SEIS shares, provided you received some Income Tax relief. In this case, to qualify for disposal relief, none of that Income Tax relief must have been withdrawn and the only reason you did not receive Income Tax relief in full was that your claim reduced your Income Tax liability to nil." On the hmrc Web page it says this. This makes it sound like it doesn't matter. But i am confused by the phrase " provided you received some income rax relief". Does this mean i have to make sure to at very least get £1 worth of income tax relief from each investment at the very least or is that a misunderstanding by me. Kind regards and thanks to anyone who can help.

Hi,

For EIS please refer to:

HS297 Capital Gains Tax and Enterprise Investment Scheme (2024)

and for SEIS:

HS393 Seed Enterprise Investment Scheme — Income Tax and Capital Gains Tax reliefs (2024)

The CGT depends on what you are claiming.

Thank you.

 

hello I read it but i couldn't understand. I'm not talking about cgt relief. i am talking about exemption. if i make an seis/eis investment of 5k but i have maxed out my income tax relief. Do i still get cgt exemption for the entire 5k investment if it becomes worth 50k? I am asking about what i need to do, to still make sure my seis eis investments still qualify for cgt exemption, even after my income tax relief has been maxed out.

"You may not have to pay CGT on a gain on your disposal of the SEIS shares, even if you did not receive Income Tax relief in full on all your SEIS shares, provided you received some Income Tax relief. In this case, to qualify for disposal relief, none of that Income Tax relief must have been withdrawn and the only reason you did not receive Income Tax relief in full was that your claim reduced your Income Tax liability to nil." to clarify i am talking about cgt disposable relief. say i invest 5k, after 5 years it becomes 50k and is sold. but i never got any income tax relief as i had already had maxed it out with another eis/seis investment. even though the investment qualified for it. but because i had no income tax relief left, i got none on this eie/seis investment. is the capital gain of 45k from selling the shares still free of tax? I've made 2 different eis/seis investment. both will max out my income tax relief. i plan to sell them after 5 years. so I'm wondering if both will be cgt exempt on disposal, when i sell them both in 5 years? or do i need to pick and choose which one now.

Hi,
We can only provide general information / guidance in this forum.  
For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310, contact our webchat facility at:
Contact HMRC or seek professional advice
Thank you.