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Posted Mon, 09 Jan 2023 10:59:39 GMT by danesi75
Hi, In Mar-22 through an early exit, the shares I held in a start-up where sold. I had previously obtained EIS tax relief (30%) on that investment. The initial investment was £500, and I had obtain £150 tax relief. The sale proceeds were £1000. As the shares were sold before the end of the 3 year period, I wanted some help/guidance on how to treat the disposal and tax relief withdrawal in my self-assessment. As this is new a situation, any help would be greatly appreciated! Thanks, Mirco
Posted Tue, 10 Jan 2023 15:20:21 GMT by danesi75
In it benefits others... I have now spoken with someone from the technical support team and they confirmed that: You must write to HMRC within 60days of the disposal and they will then raise a charge for the tax relief you had been given previously. A simple letter with the details of the disposal is sufficient. This cannot be done via Self-Assessment as it pertains to a past tax period. In the current tax year you fill in the info related to the CGT you're liable for
Posted Thu, 12 Jan 2023 15:05:30 GMT by HMRC Admin 32
Hi,

You will need to confirm this in writing, to 'HM Revenue and Customs, BX9 1AS', to advise that the EIS shares have been sold and no longer qualify for EIS relief. HMRC will raise a special assessment under S235 ITA 2007 to recover the tax that the withdrawal of the relief now brings back into charge. The due date for payment of the tax is 30 days after the date of issue of an assessment. 

Thank you.

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