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Posted 5 months ago by pvmellor mellor
I have shares in a small company bought through EIS. The company has not been successful and I have recently sold my shares back to the owner at a loss. I believe I can claim loss relief on these shares in my next tax return. However, I have heard that if the company later on goes on to make a profit, then - even though I am now no longer a shareholder - the loss relief I have claimed can be revoked by HMRC, and I might have to pay it back. Could you confirm if this is the case or not? Many thanks.
Posted 5 months ago by HMRC Admin 19 Response
Hi,
If you claimed tax relief on the cost of the acquistion of these shares and then disposed of them within the 3 year rention period, the tax relief is withdrawn.  
If you disposed of the shares at a loss, you can claim loss relief in your tax return.  
You need to provide supporting evidence of the loss of the EIS shares in your tax return.
Thank you.
Posted 5 months ago by maxb
I'm no expert, and EIS is complicated, but I've been doing a lot of reading of the online resources to be ready to fill in my own tax returns... I've not come across anything suggesting a validly claimed relief being withdrawn due to future performance of the company AFTER sale of the shares.

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