Claiming EIS Loss Relief via Online Self Assessment

Hi, one of the companies I invested in under EIS ceased trading last year and I would like to claim EIS loss relief against my income tax for the 22/23 tax year. Is it possible to do this via the online self assessment portal? I have seen other responses from HMRC in these forums saying it is possible, but it's not clear to me in which section I should fill in the details of the loss. I understand I can use the supplemental SA108 form to claim for this (I think), but again, I'm not clear how this would be logged via the online self assessment process. Can anyone help?

Can anyone help with this?

Hi

Yes, you can claim this. You would note it as a disposal with no funds received and claim the election of negligable value claim.

Thank you

Thanks for confirming, would it be possible to clarify exactly where within the online self assessment I would include all this detail, I'm struggling to find the specific page to offset against income tax.

I believe what you need to do is tick yes when tailoring you return to the question "If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do you need to complete the Capital Gains section?" There is then a relevant part on loss relief where (I am not a tax adviser but I think I'm right - I've done it twice so far...) you enter the amount lost, net of the tax relief. So if you bought £1000 in shares and the company went completely bust, your claim is for £700.

Hi,

You will need to tailor your return at section 3 to say yes to capital gain. You need to state that it is unlisted shares and then complete the boxes required for the amounts.

Thank you.

Thanks, is this the right way to offset against income tax rather than capital gains though? The way I read the form on that page is it will offset against capital gains which isn't what I want.

Hi Jay Taxayer
That is correct.

Hi NotTheRealMrT,
Please refer to guidance here:
Claim to set loss from share disposal against income
Thank you. 

The online form won't let me set disposal proceeds to zero (the company being liquidated and has ceased trading, so my proceeds are nothing), is there any way around this or am I misunderstanding what I should put in this box? ( Not sure if this will work but example of what I see is in this screenshot: https://imgur.com/a/TNZ2Tsz )

Same question here. EIS losses against income tax. Where is that filled in on online assessment please? It is not capital gains loss.

The link posted above by HMRC Admin 25 goes to a Microsoft login page so isn’t accessible. Also we’re not sure what Admin 10 ‘That is correct’ is saying is correct. Thanks for helping.

Hi NotTheRealMrT,

You change it to £1 and add a further £1 to your costs to show that £0 has been made.

Thank you.

Hi Gojo2 Anon,

It still needs to be declared under the capital gains section as unlisted shares, this then allows it to be set against other income. You can see guidance here at box 41:

Capital Gains Summary notes

Thank you.

Hello I have the same problem. Is it possible to provide further guidance on what I would need to be able to enter in Box 41: Losses used against income – amount claimed against 2023–24 income of SA108 when I try to use the tax return online? Thank you

Hello again, I found the section but when I try completing this, I get a message saying: There is a problem You cannot complete 'Gains in the year, before losses' as you have not completed 'Number of disposals' and 'Disposal proceeds'. Please amend. I've tried adding £1 to see if that worked but that didn't help. Please provide some guidance or how I take this further as I would really like to try to complete this online.

Hi Palakpari,
This box only applies if you can set capital losses against your income for this year.
You will need Helpsheet 286, ‘Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies’,
Helpsheet 297, ‘Capital Gains Tax and Enterprise Investment Scheme’ and Helpsheet 393, ‘Seed Enterprise Investment Scheme – Income Tax and Capital Gains Tax Relief’ to help you fill in this box.
Thank you.

Hi Palakpari,
You need to report a disposal in the first instance in order to claim relief. for the EIS it will be 1 disposal with proceeds of 0. the cost price then generates the loss allowable.
Thank you.

Hi, I also need explicit guidance on what amount to input in Box 41: should it be the same amount as box 35 Losses in the year if these consist only of losses from EIS companies going into insolvency (net of EIS relief, unlike box 33), or my marginal tax rate applied to these losses in box 35? I wonder if the system will not apply my marginal tax rate to this box itself for the final computation as the tax overpaid amount at the end seems a bit low if I already apply my marginal tax rate to the losses amount in box 41. Please don't send me to HS286 How and when to claim the relief, I already read it and it's not explicit enough. Thank you

Hi,
We cannot advise you of the values to enter on the tax return, only where your entries should go on the tax return.  
For an answer to your question, you would need to seek professional advice.
Thank you.