Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 21 Nov 2024 20:18:24 GMT 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 Wed, 27 Nov 2024 12:46:15 GMT 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cost of the acquistion of these shares and then disposed of them within the 3 year rention period, the tax relief is withdrawn.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.

You must be signed in to post in this forum.