When can I claim EIS loss relief?

Hello, I have recently disposed of some EIS shares at a loss and would like to claim loss relief via self assessment. I disposed of the shares in the current tax year (23/24), but would like to claim the loss against last year's income (22/23). Can I submit this claim as part of my 22/23 tax return? Or do I need to wait until my 23/24 return is due and make the claim then? Thanks in advance! David

Hi
You need to wait until your are filing the 23/24 tax return as in year losses needed to be used against in year gains first.

HI Admin I am in the same situation where I would like to claim EIS loss relief for shares disposed of this tax year (2023/24) against last year's income (22/23) and have yet to submit my 22/23 tax return. Can i clarify something? You mention that in year losses need to be used against in year gains first, but seeing as we are permitted to clam the loss relief against last years income, it would mean by definition, that we don't actually need to use it against in year capital gains first? Would it be possible to definitely confirm then that we still can't submit the loss relief on our 2022/23 returns? thanks 

Name removed admin . 

Hi,
As the loss did not occur in the 22/23 tax year, you cannot claim it on the return. you can submit a separate claim for the losses for it to be done manually rather than wait until the 23/24 return is due.
You would need to submit this in writing to HMRC, PAYE & Self Assessment BX9 1AS.
Thank you.

Understood. Thank you.

Hi, I need to file 22/23 tax return, I just notice that I have a EIS loss (Purchased in 2016 and terminated in Sept 2019 held for three years) but have not made any loss claim yet. Can I claim EIS loss relief in my 22/23 tax return? many thanks

Hi littlebee1030,
You can only claim loss relief when you dispose of the shares or the company is insolvent. please see giudance at:-
 HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2023)
Thank you.

Filling in my 2022/23 self assessment return. I incurred a complete loss in Oct 2021 on an EIS investment. How do I fill in SA108? So far I have boxes 33, 35, 43 and 44 set to the amount of the effective cost (i.e. purchase cost less 30% EIS tax relief) and box 36 set to NVC. However, these entries do not result in any tax refund in my calculation. What did I do wrong?

Hi,

It is possible that you have not paid tax, so no tax is refundable. We cannot tell what you have entered on your tax return. For a detailed answer to to your question, you would need to contact our Self Assesment team or seek professional advice.

Self Assessment tax return forms

Thank you.

1. Can I claim loss relief against income tax on EIS shares which went bust in April 2023 against the 21-22 tax year? 2. Or the 23-24 tax year? 3. If I get loss relief against income tax on EIS shares which went bust for the 21-22 year at my marginal rate of 40% for that year, will my tax account be credited and affect my tax position (including tax bands) for the following year, 22-23?

Thanks HMRC Admin 19. I had paid enough tax to reclaim the loss. The solution was to enter the tax being reclaimed into box 15 "Decrease in tax due because of adjustments to an earlier year" on SA110 page TC2

Hi Gerard,

Please refer to guidance at:

HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2023)

Thank you.

Hi HMRC Admin 32, Thank you, that addresses the years/timing. Can you help with my Q3? 3. If I get loss relief against income tax on EIS shares which went bust for the 21-22 year at my marginal rate of 40% for that year, will my tax account be credited and affect my tax position (including tax bands) for the following year, 22-23? Do I need to get a cash refund paid for the tax relief of 21-22 so that it is no longer in my account, and does not affect the following year 22-23? I successfully entered the EIS losses against income in an amendment to my 21-22 return. However when I tried some EIS losses against income in my 22-23 return, following the same procedure, I got an error which I could not resolve despite trying different things, many times. It seems the 22-23 return operates differently from the 21-22 amendment? The error (maybe because I have no gains, only losses, and disposal proceeds are zero?) is: You cannot complete 'Gains in the year, before losses' as you have not completed 'Number of disposals' and 'Disposal proceeds'. Please amend.

Hi,

EIS losses are declared in the unlisted shares and securities section of SA108 and the online capital gains section. In this section, you can elect to set the losses against other income in the tax year. If you claimed tax relief on the EIS shares and they were disposed of whithin 3 years of acquistion, the tax relief is not due and will need to be repaid. 

Enterprise Investment Scheme – Income Tax relief (Self Assessment helpsheet HS341)

Thank you.

 

Hi HMRC Admin 2, Thank you. I have followed all the procedures and helpsheets (SA108_Notes_2023.pdf, HS297 Capital Gains Tax and Enterprise Investment Scheme (2023) - GOV.UK.pdf, HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2023) - GOV.UK.pdf) for EIS losses against income, and understand how it works in principle, but cannot find an answer to my Question 3: 3. If I get loss relief against income tax on EIS shares which went bust for the 21-22 year at my marginal rate of 40% for that year, will my tax account be credited and affect my tax position (including tax bands) for the following year, 22-23? Do I need to get a cash refund paid for the tax relief of 21-22 so that it is no longer in my account, and does not affect the following year 22-23? Nor Question 4: 4. I successfully entered the EIS losses against income in an amendment to my 21-22 return. However when I tried some EIS losses against income in my 22-23 return, following the same procedure, I got an error which I could not resolve despite trying different things, many times. It seems the 22-23 return operates differently from the 21-22 amendment? The error (maybe because I have no gains, only losses, and disposal proceeds are zero?) is: "You cannot complete 'Gains in the year, before losses' as you have not completed 'Number of disposals' and 'Disposal proceeds'. Please amend."

Hi,

The loss claim refund for 21/22 will not affect the tax calculation for 22/23 if the loss is for a different company.  

You can amend the disposal proceeds to £1 and add a further £1 to the expenses.

Thank you.